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QTS Realty increases credit facility to $1.7B

Data center real estate investment trust QTS Realty Trust Inc. boosted its unsecured credit facility to $1.7 billion with improved financing and enhanced covenant flexibility.

The amended facility consists of a five-year $225 million term loan, a 5.5-year $225 million term loan, a seven-year $250 million term loan, and a four-year $1 billion revolving credit facility with a one-year extension.

The facility also provides for revolving credit borrowing capacity of up to $300 million in various foreign currencies and a $500 million accordion feature to boost the credit facility up to $2.2 billion, subject to securing additional loan commitments.

The current interest rate on the five-year $225 million term loan and the 5.5-year $225 million term loan is the London interbank offered rate plus 1.2%, while the revolver has an interest rate of LIBOR plus 1.25%, representing a 10-basis-point cut from the interest rate on the REIT's credit facility before the amendment. The seven-year $250 million term loan bears an interest rate at LIBOR plus 1.5%.

KeyBank NA is administrative agent, while Bank of America NA, Regions Bank and TD Securities (USA) LLC are co-syndication agents with respect to the revolver, five-year $225 million term loan and 5.5-year $225 million term loan.

Regions Bank, TD Securities (USA) LLC and SunTrust Bank are co-syndication agents with respect to the seven-year $250 million term loan. Co-documentation agents include Suntrust Bank, PNC Bank NA, BMO Harris Bank NA and Capital One NA.

Joint lead arrangers and joint book runners for the amendment and extension with respect to the revolver, five-year $225 million term loan and 5.5-year $225 million term loan include KeyBanc Capital Markets Inc., BofA Securities Inc., Regions Capital Markets and TD Securities (USA) LLC.

Joint lead arrangers and joint book runners for the amendment and extension with respect to the seven-year $250 million term loan include KeyBanc Capital Markets Inc., Regions Capital Markets, TD Securities (USA) LLC and SunTrust Robinson Humphrey Inc.

The REIT noted that 15 additional financial institutions take part in the credit facility.