Digital Realty Trust, Inc. Enters Into Enhanced $650 Million Senior Unsecured Revolving Credit Facility
SAN FRANCISCO, Sept. 4 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading owner and manager of corporate datacenters and Internet gateway facilities, today announced that it has modified, extended and expanded its senior unsecured revolving credit facility, increasing the total capacity to $650 million from $500 million. The purpose of the enhanced credit facility is to provide funds for acquisitions, development, redevelopment, repayment of debt, working capital and general corporate purposes.
The $650 million facility is expandable to $750 million and has sixteen participant banks, up from thirteen banks in the previous facility. The credit facility now matures in August 2010 and has two one-year extension options. The applicable margin ranges from 12.5 to 25 basis points lower than the applicable margin for the earlier facility and the covenants have been modified to provide DLR with enhanced financial flexibility and increased borrowing capacity.
"The successful completion of this credit facility provides Digital Realty Trust with greater financial flexibility in the U.S. and abroad at more favorable borrowing costs and a longer maturity," commented A. William Stein, CFO and Chief Investment Officer for Digital Realty Trust. "We greatly appreciate the confidence and support from our lenders, particularly given current credit conditions, and believe that securing a facility of this magnitude further validates our business model."
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, repositions and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter(TM) and Powered Base Building(TM) datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and internet enterprises, to manufacturing and financial services. Digital Realty Trust's 65 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 11.8 million rentable square feet, including 1.7 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 26 markets throughout North America and Europe. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward looking statements include statements related to the Company's expected liquidity from its credit facility. These risks and uncertainties include adverse economic or real estate developments in the Company's markets or the technology industry; general economic conditions; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; inability to manage domestic and international growth effectively; failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; difficulties in identifying properties to acquire and completing acquisitions at acceptable return levels; failure to successfully operate acquired properties and operations; failure of acquired properties to perform as expected; failure to successfully redevelop properties acquired for such purposes or unexpected costs related thereto; the inability to lease redeveloped space, failure to maintain the Company's status as a REIT; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in foreign currency exchange rates; risks of operating in foreign markets; and changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the United States Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2006. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For Additional Information:
A. William Stein Pamela Matthews
Chief Financial Officer and Investor/Analyst Information
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. (415) 738-6500
(415) 738-6500
SOURCE Digital Realty Trust