Data center real estate investment trust CyrusOne Inc.'s operating partnership struck a new senior unsecured credit agreement to boost the size of its credit facility to $3.0 billion from $2.0 billion.
The company said the fresh contract comes with extension options, reductions in the interest rate margins on the revolving credit facility and five-year term loan, along with augmented flexibility to back the company’s international expansion ambitions.
The new agreement comprises a $1.7 billion revolving credit facility, including a $750 million multicurrency borrowing sublimit, and term loan commitments of $1.3 billion.
The term loan commitments comprise a $1.0 billion five-year term loan, which includes a delayed draw option allowing CyrusOne to draw $300 million in up to three tranches over a six-month period in multiple currencies, and a new $300 million seven-year term loan.
The interest rate margins on the revolving credit facility and the five-year term loan have been decreased by 10 basis points to the London Interbank Offered Rate plus 1.45% and LIBOR plus 1.40%, respectively, while the interest rate margin on the seven-year term loan is LIBOR plus 1.70%.
The maturity of the revolving credit facility is March 2022. The expiration date can be extended by one year, bringing the final maturity to March 2023. The maturity of the five-year term loan is March 2023, and the seven-year term loan matures in March 2025.
The credit agreement comes with an accordion feature, which provides for up to $1 billion in additional revolving or term loan commitments.
CyrusOne tapped JPMorgan Chase Bank NA to serve as the administrative agent, KeyBank NA to act as syndication agent and JPMorgan Chase Bank NA, KeyBanc Capital Markets Inc., Barclays Bank PLC, RBC Capital Markets LLC and TD Securities (USA) LLC to serve as joint lead arrangers.
Co-documentation agents include Bank of America NA, Citizens Bank NA, Fifth Third Bank, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., PNC Bank NA, Raymond James Bank NA, SunTrust Bank and The Bank of Tokyo - Mitsubishi UFJ Ltd.
BMO Harris Bank NA, Credit Agricole Corporate and Investment Bank and ING Capital LLC are new lenders for CyrusOne.
There are a total of 23 financial institutions in the syndicate.