CyrusOne Inc. Announces Amended $2.5 Billion Unsecured Credit Facility
April 01 2020 - 8:30AM
Business Wire
Company Extends Maturity Dates and Decreases Borrowing Rates
CyrusOne Inc. (“CyrusOne” or the “Company”) (NASDAQ: CONE), a
premier global data center REIT, today announced that its operating
partnership, CyrusOne LP, has entered into an amendment to its
senior unsecured credit agreement, extending the maturity dates and
decreasing the interest rate margins applicable on the revolving
credit facility and term loans.
The amended agreement consists of a $1.4 billion revolving
credit facility, which includes a $750 million multicurrency
borrowing sublimit, and term loan commitments totaling $1.1
billion. The revolving credit facility has been decreased by $300
million, resulting in savings on the annual facility fee and
reflecting the Company’s enhanced access to capital as an
investment-grade issuer. The revolving credit facility matures in
March 2024 and includes a 12-month extension option, which, if
exercised by the Company, would extend the final maturity to March
2025. The term loan commitments consist of a $400 million term loan
maturing in March 2023 and a $700 million term loan maturing in
March 2025. The term loan maturing in March 2023 includes two
12-month extension options, which, if fully exercised by the
Company, would extend the final maturity to March 2025. The credit
agreement also contains an accordion that allows the Company to
obtain up to $1.5 billion in additional revolving or term loan
commitments.
The all-in drawn margin applicable to the revolving credit
facility based on the Company’s current leverage level has
decreased by 25 basis points compared to the margin on the previous
revolving credit facility. The current margin is 100 basis points
over the applicable index for floating rate advances, and the
annual facility fee is 20 basis points. The margin on the term loan
maturing in March 2023 based on the Company’s current leverage
level is LIBOR + 120 basis points, a decrease of 15 basis points
compared to the margin on the previously outstanding term loan
maturing in March 2023. The margin on the term loan maturing in
March 2025 based on the Company’s current leverage level is also
LIBOR + 120 basis points, a decrease of 45 basis points compared to
the margin on the previously outstanding term loan maturing in
March 2025.
“This amended credit facility is another step in our ongoing
efforts to maintain a strong balance sheet and ample liquidity. The
pricing, terms and facility size reflect our status as an
investment-grade issuer with ongoing access to the IG bond market,
as needed. We will generate significant interest and fee savings
under the amended credit facility, and we have effectively extended
our bank debt maturities out to five years,” commented Diane
Morefield, Chief Financial Officer. “We want to thank all our bank
relationships that underwrote this credit facility in the current
challenging environment. We appreciate their support and believe
the execution of this credit facility reflects their confidence in
CyrusOne and our strategy, and the robust underlying trends for the
data center industry,” summarized Morefield.
CyrusOne engaged JPMorgan Chase Bank, N.A. to serve as
administrative agent, KeyBank National Association, Morgan Stanley
Bank, N.A., RBC Capital Markets LLC, and TD Securities (USA) LLC,
to serve as syndication agents, and JPMorgan Chase Bank, N.A.,
KeyBanc Capital Markets Inc., Morgan Stanley Bank, N.A., RBC
Capital Markets LLC and TD Securities (USA) LLC to serve as joint
lead arrangers. Co-documentation agents include Citizens Bank,
N.A., Deutsche Bank Securities Inc., Fifth Third Bank, Goldman
Sachs Bank USA, MUFG Bank, Ltd, PNC Bank, National Association, and
Truist Bank (successor by merger to SunTrust Bank). Senior managing
agents include BMO Harris Bank and Credit Agricole Corporate and
Investment Bank. Barclays Bank PLC is a managing agent. There are
15 financial institutions in the syndicate.
Safe Harbor
This release and the documents incorporated by reference herein
contain forward-looking statements regarding future events and our
future results that are subject to the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, are
statements that could be deemed forward-looking statements. These
statements are based on current expectations, estimates, forecasts,
and projections about the industries in which we operate and the
beliefs and assumptions of our management. Words such as "expects,"
"anticipates," "predicts," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "continues," "endeavors,"
"strives," "may," variations of such words and similar expressions
are intended to identify such forward-looking statements. In
addition, any statements that refer to projections of our future
financial performance, our anticipated growth and trends in our
businesses and industry, our ability to access the capital markets,
and other characterizations of future events or circumstances are
forward-looking statements. Readers are cautioned these
forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties, which
could cause our actual results to differ materially and adversely
from those reflected in the forward-looking statements. Factors
that could cause or contribute to such differences include, but are
not limited to, those discussed in this release and those discussed
in other documents we file with the Securities and Exchange
Commission (SEC). More information on potential risks and
uncertainties is available in our recent filings with the SEC,
including CyrusOne's Form 10-K report, Form 10-Q reports, and Form
8-K reports. Actual results may differ materially and adversely
from those expressed in any forward-looking statements. We
undertake no obligation to revise or update any forward-looking
statements for any reason.
About CyrusOne
CyrusOne (NASDAQ: CONE) is a real estate investment trust (REIT)
specializing in highly reliable enterprise-class, carrier-neutral
data center properties. The Company provides mission-critical data
center facilities that protect and ensure the continued operation
of IT infrastructure for approximately 1,000 customers, including
more than 200 Fortune 1000 companies.
With a track record of meeting and surpassing the aggressive
speed-to-market demands of hyperscale cloud providers, as well as
the expanding IT infrastructure requirements of the enterprise,
CyrusOne provides the flexibility, reliability, security, and
connectivity that foster business growth. CyrusOne offers a
tailored, customer service-focused platform and is committed to
full transparency in communication, management, and service
delivery throughout its nearly 50 data centers worldwide.
Additional information about CyrusOne can be found at
www.CyrusOne.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200401005104/en/
Investor Relations Michael Schafer Vice President,
Capital Markets & Investor Relations 972-350-0060
investorrelations@cyrusone.com
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