Iron Mountain Doubles Credit Line Ahead of Conversion to REIT
Iron Mountain Inc. (IRM), a document storage company, doubled the size of its credit line to pay down a loan and made changes to the financing pact to pave the way for a conversion to a real estate investment trust.
The Boston-based company increased its revolver to $1.5 billion, with the ability to boost it to as much as $2 billion, according to a regulatory filing. Iron Mountain borrowed $630 million from the amended credit line to pay down $450 million of an existing loan that matures in 2016.
In addition, some covenants of the credit agreement were modified to accommodate Iron Mountain’s switch to a REIT. Standard & Poor’s reaffirmed its BB- rating on the company’s debt with a negative outlook owing to the uncertainty surrounding the conversion.
The company is also offering about $750 million in U.S. and Canadian dollar-denominated 10-year notes to redeem bonds maturing in 2017, 2018 and 2020, and to fund repurchase of about $137.5 million of its 2021 notes.
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