In Expansion Mode, QTS Boosts Borrowing Power
February 15th, 2012 By: Rich Miller
Data center service provider QTS (Quality Technology Services) has increased the capacity of its credit facility by $270 million, to a total of $440 million, the company said today. QTS will use the additional money to continue to expand data center space in key markets.
Twelve additional financial institutions have joined lead arranger KeyBanc Capital Markets in the credit facilit, including Citibank, Deutsche Bank Trust, Regions Bank, Bank of America, Goldman Sachs Bank, Caterpillar Financial Services, Credit Suisse, Morgan Stanley Bank, UBS Loan Finance, Royal Bank of Canada and Stifel Bank & Trust.
“QTS appreciates the support and confidence that these financial institutions have demonstrated in the future of QTS,” said Bill Schafer, chief financial officer – QTS. “The increased credit capacity enhances QTS’ financial flexibility as the company continues to expand its data center facilities in Atlanta, Richmond, Jersey City and Santa Clara. The credit facility will also allow us to repay existing debt, fund development to meet customer demand in other potential markets, and focus on future opportunities.”
The new facility extends the maturity date to September 2014 and is comprised of a $125 million term loan facility and a $315 million revolving credit facility. The facility is secured by the QTS Atlanta Metro Data Center and QTS Suwanee (Atlanta) Data Center assets. The credit facility also provides a $100 million accordion feature that can increase the amount of the facility up to $540 million.
With 12 locations in seven states, QTS owns, operates and manages 3.1 million square feet of data center infrastructure and supports more than 700 customers.