DataBank can bank on $330M in secured notes for new data centers, expansion in US
DataBank recently announced that it will issue $330 million of secured notes in its second securitization offering this year.
The new securitization notes add $330M in additional capital and liquidity to DataBank’s balance sheet and will be available for investment in new data center capacity including facilities and campuses in Salt Lake City, Denver, Ashburn and New York.
“This securitization reflects the success of our strategy to develop the largest geographic footprint of multi-tenant, enterprise-grade, edge colocation data centers in the U.S,” notes Kevin Ooley, DataBank’s President & CFO. “Previously, only hyperscale data center providers attracted this kind of investor interest, but it’s clear that our strategy to deliver capacity in a wide range of Tier I and Tier II markets to a diverse set of customers is gaining strong backing from institutional investors.”
This is DataBank’s second securitization in 2021, coming just seven months after the company conducted the first-ever securitization for a multi-tenant, enterprise data center provider, raising $658 million in secured notes in March of 2021. Today’s announcement also comes less than a year after DataBank announced the acquisition of zColo, the data center assets of Zayo Group Holdings. Today, DataBank is the leading-edge colocation and interconnect platform with 60+ data centers in 29 metro markets and 20 major interconnect locations.
“The strong reception we received on this financing reflects DataBank’s momentum and leadership in the rapidly evolving edge infrastructure landscape,” adds Tom Yanagi, Managing Director of DigitalBridge, DataBank’s lead investor. “This securitization was oversubscribed with participation from 26 unique investors, demonstrating the quality of DataBank’s underlying business and the important role it plays in our digital infrastructure portfolio.”
Kroll provided an initial rating of the $330 million secured notes which consists of a $310m A-2 tranche rated A- and a $21.8m B tranche rated BBB. Demand for the securitization was extremely high with 26 unique investors ultimately participating and all tranches were oversubscribed. Deutsche Bank acted as Sole Structuring and as a Joint Active Bookrunning Manager and Guggenheim Securities, LLC acted as a Joint Active Bookrunning Manager in the transaction, as well.
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Article Topics
Databank | Digital Bridge | edge data center | funding | regional data center | zColo
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