Digital Realty Trust owns 66 properties comprising approximately 11.9 million sf (net rentable). The portfolio is spread throughout North America and Europe. The company says it will use the proceeds to temporarily repay borrowings under its credit facility, ultimately allowing it to borrow the money again for additional acquisitions, development and redevelopment opportunities.
In early September, the company modified, extended and expanded its senior unsecured revolving credit facility, increasing the total capacity to $650 million from $500 million and gaining the option to expand it by another $100 million. The company said it would use the additional dollars for acquisitions and development, working capital and general corporate purposes.
Thirteen banks participated in the new facility, which now matures in August 2010 and has two one-year extension options. Digital Realty said 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 it with greater financial flexibility and increased borrowing capacity.
Prior to the changes, as of June 31, Digital Realty's unsecured credit facility carried an interest rate that was equal to 1-month Libor plus 1.50% and matured on Oct. 31, 2008, according to the most recent 10Q filed with the SEC. Outstanding principal related to the facility was $114.3 million, split fairly evenly between US Dollars, Euros and British Sterling.
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