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Press Release -- August 19th, 2013
Source: Digital Realty Trust

Digital Realty Completes $3 Billion Global Revolving Credit Facility And Multi-Currency Term Loan Refinancing

All-in pricing reduced by 20 basis points for the Global Revolving Credit Facility and by 25 basis points for the Multi-Currency Term Loan

SAN FRANCISCO, Aug. 19, 2013 /PRNewswire/ — Digital Realty Trust, Inc. (DLR), a leading global provider of data center solutions, today announced that it has completed the refinancing of its global revolving credit facility and term loan.  The refinancing allowed the company to reduce pricing, extend loan maturities and increase its aggregate commitments by $450 million. The combined facilities total $3 billion, representing the 5th largest unsecured credit facilities among US REITs. The refinancing provides funds for acquisitions, development, redevelopment, debt repayment, working capital and global expansion.

The $2 billion Global Revolving Credit Facility matures in November 2017, has two six-month extension options, and can be increased up to a total of approximately $2.55 billion U.S. dollar equivalent. Pricing for the Facility, based on the Company’s senior unsecured debt rating of BBB/Baa2, was reduced from 125 to 110 basis points over the applicable index for floating rate advances and the annual facility fee was reduced from 25 to 20 basis points.

The $1 billion Multi-Currency Term Loan maturity is unchanged and remains April 2017, with two six-month extension options added, and total commitments can be increased up to $1.1 billion.  Pricing for the Term Loan, based on the Company’s senior unsecured debt rating of BBB/Baa2, was reduced from 145 to 120 basis points.

“We are very pleased with the strong demand we received from the international lending community to participate in the refinancing of these facilities, which were oversubscribed with commitments totaling $4.6 billion from 27 financial institutions from around the globe,” said A. William Stein, Chief Financial Officer and Chief Investment Officer of Digital Realty.  “To satisfy this demand, we upsized our Global Revolving Credit Facility by $200 million and increased our Term Loan by $250 million.  In addition, the improved pricing grid is equal to or better than any widely syndicated credit facility for a U.S. large cap investment grade REIT, including those with a credit rating higher than DLR’s BBB/Baa2 rating.  We believe these positive trends illustrate the institutional lender community’s view on the strength of our balance sheet and underlying business, while providing us with greater financial flexibility as we continue to expand our portfolio globally.”

Funds from the combined facilities may be drawn in U.S, Canadian, Singapore, Australian and Hong Kong Dollars, as well as Euro, Pound Sterling, Swiss Franc, Mexican Pesos and Japanese yen denominations. In addition, the company was able to achieve improved covenants terms and definitions, including the removal of the tangible net worth covenant and reducing the cap rate from 8.25% to 8.00% on data center assets.

“We would like to acknowledge Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC’s efforts in their capacity as Joint Lead Arrangers and Joint Book Running Managers which led to a successful syndication of the two facilities and extend our gratitude to the entire bank group for their overwhelming support of the Company,” added Mr. Stein.

About Digital Realty

Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer’s unique data center needs. Digital Realty’s customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty’s 127 properties, including three properties held as investments in unconsolidated joint ventures, comprise approximately 23.7 million square feet as of June 30, 2013, including 2.8 million square feet of space held for development. Digital Realty’s portfolio is located in 32 markets throughout North America, Europe, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty’s website at

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, including statements related to use of proceeds from the facilities, maturity dates, extension options and accordion options. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government’s credit rating; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for development; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including 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 U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013.  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 M. Garibaldi
Chief Financial Officer and Vice President, Investor Relations
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. +1 (415) 738-6500
+1 (415) 738-6500

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