Posted By Rich Miller On October 28, 2010 @ 12:14 pm In Atlanta | No Comments
QTS (Quality Technology Services) has closed on a new, $125 million revolving credit facility. The credit facility is secured by the QTS Atlanta Metro Data Center, and includes an “accordion” feature that could allow the company to borrow up to $250 million.
The new credit line has allowed QTS to reduce its debt load by $60 million, while expanding its total credit capacity by $55 million. An accordion provision allows the borrower to expand the credit line if certain conditions are met. Accordion loans secured by data centers have been successfully used by other developers to raise expansion capital, most notably DuPont Fabros Technology.
“We are appreciative of the confidence shown in QTS by the willingness of several financial institutions to participate in this revolving credit facility,” said Bill Schafer, Chief Financial Officer of QTS. “In addition to providing funds which enabled the Company to take advantage of the debt repurchase discount, the facility provides for enhanced financial flexibility and significantly reduces the Company’s outstanding debt and related interest expense. This new facility also establishes relationships with several financial institutions.”
The new revolving credit facility was arranged by Key Bank which also serves as administrative agent. The facility currently includes lead arranger KeyBanc Capital Markets and four additional financial institutions as participants, including Citibank, N.A.; Credit Suisse AG; Deutsche Bank Trust Company Americas; and Royal Bank of Canada.
QTS  currently owns and operates over 3.1 million square feet of data center space in 12 facilities across seven states. Earlier this year the company announced plans to build a 1.3 million square foot facility  in Richmond, Virginia.
Article printed from Data Center Knowledge: http://www.datacenterknowledge.com
URL to article: http://www.datacenterknowledge.com/archives/2010/10/28/qts-closes-on-125-million-credit-facility/
URLs in this post:
 QTS: http://www.qualitytech.com/
 1.3 million square foot facility: http://www.datacenterknowledge.com/archives/2010/04/05/qts-plans-huge-virginia-data-center/
 Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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