DLR » Topics » Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our debt obligations.

These excerpts taken from the DLR 10-K filed Mar 2, 2009.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our debt obligations.

Our total consolidated indebtedness at December 31, 2008 was approximately $1.4 billion, and we may incur significant additional debt to finance future acquisition and development activities. We have a revolving credit facility, which has a borrowing limit based upon a percentage of the value of our unsecured properties included in the facility’s borrowing base. At December 31, 2008, $524.0 million was available under this facility. In addition, under our contribution agreement with respect to the 200 Paul Avenue 1-4 and 1100 Space Park Drive properties, we have agreed to make available for guarantee up to $17.8 million of indebtedness and may enter into similar agreements in the future.

Payments of principal and interest on borrowings may leave us with insufficient cash resources to operate our properties, for our operating partnership to pay distributions to its unitholders, including us, and, consequently, for us to pay cash dividends to our stockholders to maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

 

   

our cash flow may be insufficient to meet our required principal and interest payments;

 

   

we may be unable to borrow additional funds as needed or on favorable terms;

 

   

we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 

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because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 

   

we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

 

   

we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure their loans and receive an assignment of rents and leases;

 

   

we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

 

   

our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, including cash available for us to pay dividends to our stockholders or for our operating partnership to pay distributions to its unitholders, per share trading price of our common stock or preferred stock, and our ability to satisfy our debt service obligations could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Internal Revenue Code of 1986, as amended, which we refer to as the Code.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our
debt obligations.

Our total consolidated indebtedness at December 31, 2008 was approximately $1.4 billion, and we may incur
significant additional debt to finance future acquisition and development activities. We have a revolving credit facility, which has a borrowing limit based upon a percentage of the value of our unsecured properties included in the facility’s
borrowing base. At December 31, 2008, $524.0 million was available under this facility. In addition, under our contribution agreement with respect to the 200 Paul Avenue 1-4 and 1100 Space Park Drive properties, we have agreed to make available
for guarantee up to $17.8 million of indebtedness and may enter into similar agreements in the future.

Payments of principal and interest
on borrowings may leave us with insufficient cash resources to operate our properties, for our operating partnership to pay distributions to its unitholders, including us, and, consequently, for us to pay cash dividends to our stockholders to
maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our cash flow may be insufficient to meet our required principal and interest payments;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may be unable to borrow additional funds as needed or on favorable terms;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 


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because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 







  

we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure
their loans and receive an assignment of rents and leases;

 







  

we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, including cash
available for us to pay dividends to our stockholders or for our operating partnership to pay distributions to its unitholders, per share trading price of our common stock or preferred stock, and our ability to satisfy our debt service obligations
could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Internal
Revenue Code of 1986, as amended, which we refer to as the Code.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our
debt obligations.

Our total consolidated indebtedness at December 31, 2008 was approximately $1.4 billion, and we may incur
significant additional debt to finance future acquisition and development activities. We have a revolving credit facility, which has a borrowing limit based upon a percentage of the value of our unsecured properties included in the facility’s
borrowing base. At December 31, 2008, $524.0 million was available under this facility. In addition, under our contribution agreement with respect to the 200 Paul Avenue 1-4 and 1100 Space Park Drive properties, we have agreed to make available
for guarantee up to $17.8 million of indebtedness and may enter into similar agreements in the future.

Payments of principal and interest
on borrowings may leave us with insufficient cash resources to operate our properties, for our operating partnership to pay distributions to its unitholders, including us, and, consequently, for us to pay cash dividends to our stockholders to
maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our cash flow may be insufficient to meet our required principal and interest payments;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may be unable to borrow additional funds as needed or on favorable terms;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 


13







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because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 







  

we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure
their loans and receive an assignment of rents and leases;

 







  

we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, including cash
available for us to pay dividends to our stockholders or for our operating partnership to pay distributions to its unitholders, per share trading price of our common stock or preferred stock, and our ability to satisfy our debt service obligations
could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Internal
Revenue Code of 1986, as amended, which we refer to as the Code.

These excerpts taken from the DLR 10-K filed Feb 29, 2008.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our debt obligations.

Our total consolidated indebtedness at December 31, 2007 was approximately $1.4 billion, and we may incur significant additional debt to finance future acquisition and development activities. We have a revolving credit facility, which has a borrowing limit based upon a percentage of the value of our unsecured properties included in the facility’s borrowing base. At December 31, 2007, $299.7 million was available under this facility. In addition, under our contribution agreement with respect to the 200 Paul Avenue 1-4 and 1100 Space Park Drive properties, we have agreed to make available for guarantee up to $17.8 million of indebtedness and may enter into similar agreements in the future.

Payments of principal and interest on borrowings may leave us with insufficient cash resources to operate our properties, for our operating partnership to pay distributions to its unitholders, including us, and, consequently, for us to pay dividends to our stockholders that are necessary to maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

 

   

our cash flow may be insufficient to meet our required principal and interest payments;

 

   

we may be unable to borrow additional funds as needed or on favorable terms;

 

   

we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 

   

because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 

   

we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

 

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we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure their loans and receive an assignment of rents and leases;

 

   

we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

 

   

our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, including cash available for us to pay dividends to our stockholders or for our operating partnership to pay distributions to its unitholders, per share trading price of our common stock or preferred stock, and our ability to satisfy our debt service obligations could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Internal Revenue Code of 1986, as amended, which we refer to as the Code.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our
debt obligations.

Our total consolidated indebtedness at December 31, 2007 was approximately $1.4 billion, and we may incur
significant additional debt to finance future acquisition and development activities. We have a revolving credit facility, which has a borrowing limit based upon a percentage of the value of our unsecured properties included in the facility’s
borrowing base. At December 31, 2007, $299.7 million was available under this facility. In addition, under our contribution agreement with respect to the 200 Paul Avenue 1-4 and 1100 Space Park Drive properties, we have agreed to make available
for guarantee up to $17.8 million of indebtedness and may enter into similar agreements in the future.

Payments of principal and interest
on borrowings may leave us with insufficient cash resources to operate our properties, for our operating partnership to pay distributions to its unitholders, including us, and, consequently, for us to pay dividends to our stockholders that are
necessary to maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our cash flow may be insufficient to meet our required principal and interest payments;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may be unable to borrow additional funds as needed or on favorable terms;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 







  

because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 







  

we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

STYLE="margin-top:0px;margin-bottom:0px"> 


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we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure
their loans and receive an assignment of rents and leases;

 







  

we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, including cash
available for us to pay dividends to our stockholders or for our operating partnership to pay distributions to its unitholders, per share trading price of our common stock or preferred stock, and our ability to satisfy our debt service obligations
could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Internal
Revenue Code of 1986, as amended, which we refer to as the Code.

This excerpt taken from the DLR 10-K filed Mar 1, 2007.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our debt obligations.

Our total consolidated indebtedness at December 31, 2006 was approximately $1,122.6 million, and we may incur significant additional debt to finance future acquisition and development activities. We also have an unsecured credit facility which has a borrowing limit based upon a percentage of the value of our unsecured properties included in the facility’s borrowing base. At December 31, 2006, $148.0 million was available under this facility. In addition, under our contribution agreement with respect to the 200 Paul Avenue 1-4 and 1100 Space Park Drive properties, we have agreed to make available for guarantee up to $20.0 million of indebtedness and may enter into similar agreements in the future.

Payments of principal and interest on borrowings may leave us with insufficient cash resources to operate our properties, pay the dividends to our preferred stockholders or pay distributions to our common stockholders necessary to maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

 

   

our cash flow may be insufficient to meet our required principal and interest payments;

 

   

we may be unable to borrow additional funds as needed or on favorable terms;

 

   

we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 

   

because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 

   

we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

 

   

we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure their loans and receive an assignment of rents and leases;

 

   

we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

 

   

our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, including cash available to pay dividends to our preferred stockholders or pay distributions to our common stockholders, per share trading price of our common stock or preferred stock, and

 

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our ability to satisfy our debt service obligations could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Internal Revenue Code of 1986 as amended (the Code).

This excerpt taken from the DLR 10-K filed Mar 16, 2006.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our debt obligations.

Our total consolidated indebtedness at December 31, 2005 was approximately $749.1 million, and we may incur significant additional debt to finance future acquisition and development activities. We also have an unsecured revolving credit facility which has a borrowing limit based upon a percentage of the value of our unsecured properties included in the facility’s borrowing base. At December 31, 2005, $56.5 million was available under this facility. In addition, under our contribution agreement with respect to the 200 Paul Avenue 1-4 and 1100 Space Park Drive properties, we have agreed to make available for guarantee up to $20.0 million of indebtedness and may enter into similar agreements in the future.

Payments of principal and interest on borrowings may leave us with insufficient cash resources to operate our properties, pay the dividends to our preferred stockholders or pay distributions to our common stockholders necessary to maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

 

    our cash flow may be insufficient to meet our required principal and interest payments;

 

    we may be unable to borrow additional funds as needed or on favorable terms;

 

    we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 

    because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 

    we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

 

    we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure their loans and receive an assignment of rents and leases;

 

    we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

 

    our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, including cash available to pay dividends to our preferred stockholders or pay distributions to our common stockholders, per share trading price of our common stock or preferred stock, and our ability to satisfy our debt service obligations could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Code.

This excerpt taken from the DLR 10-K filed Mar 31, 2005.

Payments on our debt reduce cash available for distribution and may expose us to the risk of default under our debt obligations.

 

Our total consolidated indebtedness as of December 31, 2004 was approximately $519.5 million, and we may incur significant additional debt to finance future acquisition and development activities. Our credit facility has a borrowing limit based upon a percentage of the value of the unsecured properties included in the facility’s borrowing base. We estimate that approximately $53.9 million of additional borrowings under this facility were available to us as of December 31, 2004. Subsequent to the acquisitions of 833 Chestnut Street and MAPP Building, on March 17, 2005 there was approximately $26.0 million of the credit facility drawn and $71.9 million available for future borrowings. In addition, under our contribution agreement with respect to the 200 Paul Avenue and 1100 Space Park Drive properties, we have agreed to make available for guarantee up to $20.0 million of indebtedness and may enter into similar agreements in the future.

 

Payments of principal and interest on borrowings may leave us with insufficient cash resources to operate our properties, pay the dividends on our series A preferred stock or make distributions on our common stock necessary to maintain our REIT qualification. Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following:

 

    our cash flow may be insufficient to meet our required principal and interest payments;

 

    we may be unable to borrow additional funds as needed or on favorable terms;

 

    we may be unable to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness;

 

    because a significant portion of our debt bears interest at variable rates, increases in interest rates could materially increase our interest expense;

 

    we may be forced to dispose of one or more of our properties, possibly on disadvantageous terms;

 

    we may default on our obligations and the lenders or mortgagees may foreclose on our properties or our interests in the entities that own the properties that secure their loans and receive an assignment of rents and leases;

 

    we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt obligations; and

 

    our default under any one of our mortgage loans with cross default provisions could result in a default on other indebtedness.

 

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If any one of these events were to occur, our financial condition, results of operations, cash flow, cash available for distribution, per share trading price of our common stock or series A preferred stock and our ability to satisfy our debt service obligations could be materially adversely affected. Furthermore, foreclosures could create taxable income without accompanying cash proceeds, a circumstance which could hinder our ability to meet the REIT distribution requirements imposed by the Internal Revenue Code (the Code).

 

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