Cyxtera's long term debt of US$853 million matures in 2024

(20 March 2023)

On March 20, Digital Core REIT's manager announced that the REIT's second largest customer was downgraded by Moody’s Investors Service on Feb 17 to Caa2 from B3. The customer is believed to be Cyxtera Technologies,a publicly traded global colocation and interconnection provider. The manager has announced that the customer occupies three buildings in Silicon Valley, two in Los Angeles and less than 5% of a facility in Frankfurt, and "represents approximately US$16 million of annualised rent or 22.6% of Digital Core REIT's total annualised rent”.

“On March 16 2023, the customer announced that it entered into an agreement with its lenders to extend the maturity date of its 2023 debt maturity to April 2024. The customer remains current on its rental obligations and has not requested any rent deferments, rental reductions, or contraction of the space it occupies," DC REIT's manager says.

Cyxtera reported its 2022 results on March 16, and announced that on March 14 it extended the debt maturity of a US$120.1 million revolving credit facility to April 2024. “The company is actively attempting to address its revolving credit facility and long-term debt that mature in April 2024 and May 2024, respectively. Due to these ongoing efforts, Cyxtera will not hold a fourth quarter 2022 conference call and is not providing 2023 guidance at this time,” the Cyxtera announcement said.