Dallas-based CyrusOne Inc., a global data center REIT, recently revealed that its operating partnership, CyrusOne LP, has entered into an amendment to its senior unsecured credit agreement that increases the total size of the facility by $450 million to $2 billion and provides additional flexibility to pursue various initiatives, including joint ventures and international expansion. The amendment increased the size of the term loan maturing in January 2022 from $300 million to $650 million and expanded the revolving credit facility by $100 million to $1.1 billion.
According to a prepared statement, proceeds from the $350-million term loan increase were used to pay down borrowings under the revolving credit facility. The existing $250 million term loan maturing in September 2021 remains unchanged. The credit agreement contains an accordion feature that allows the company to obtain up to $300 million in additional revolving or term loan commitments.
“The increase in available capacity under our revolving credit facility provides us substantial liquidity to execute on our growth plan at very attractive interest rates, and the enhanced flexibility facilitates the pursuit of opportunities consistent with the company’s strategic and financial objectives,” says Diane Morefield, CFO. “We would like to thank our entire lending group for their continued strong support of CyrusOne.”
CyrusOne engaged KeyBank National Association to serve as administrative agent, JPMorgan Chase Bank, N.A., to serve as syndication agent, and KeyBanc Capital Markets Inc., JPMorgan Chase Bank, N.A., and TD Securities (USA) LLC to serve as joint lead arrangers. Co-documentation agents include Bank of America, N.A., Barclays Bank PLC, Citizens Bank, N.A., Deutsche Bank AG New York Branch, Goldman Sachs Bank USA, Morgan Stanley Bank N.A., Morgan Stanley Senior Funding, Inc., PNC Bank, National Association, Royal Bank of Canada, SunTrust Bank, The Bank of Tokyo – Mitsubishi UFJ, Ltd., and The Toronto-Dominion Bank, New York Branch. Capital One, N.A., is a new lending institution. There are nineteen financial institutions in the syndicate.