QTS Realty to pay down revolver debt with preferred stock proceeds

By Sarah Lizee

Olympia, Wash., March 7 – QTS Realty Trust, Inc. plans to repay a portion of the amounts outstanding under operating partnership QualityTech, LP’s unsecured revolving credit facility using proceeds from an offering of series A cumulative redeemable perpetual preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

As of Dec. 31, there was about $131 million outstanding under the revolver.

The facility matures Dec. 17, 2021 and may be extended by one year at the company’s option.

Borrowings bear interest at one-month Libor plus 155 basis points to 215 bps, depending on the company’s leverage ratio. As of Dec. 31, the weighted average interest rate was 2.85%.

Proceeds from the offering will also be used for general corporate purposes.

QTS is a provider of data center solutions and fully managed services for enterprise businesses and is based in Overland Park, Kan.

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