CyrusOne has closed its $1.175 billion Series 2024-2 and 2024-3 funding round.
The asset-backed securities (ABS) offering is classified as a Secured Green Collateral Bond, and is the largest ABS issuance since 2021.
Both Series 2024-2 and Series 2024-3 were issued a rating of A-2 by S&P Global Ratings, and valued at $587.5m with a maximum loan-to-value (LTV) ratio of 70 percent. Series 2024-2 is expected to mature in five years, while Series 2024-3 is expected to mature in seven.
Eric Schwartz, CEO of CyrusOne, said: “The market’s response to our offering is a testament to CyrusOne’s exceptional track record and the recognition of the critical role we play in our customer’s expanding data and artificial intelligence needs. The significant interest from institutional investors provides us with an additional capital source to support our future growth in developing and operating data centers for hyperscale customers.”
This is the company's fourth issuance since launching a securitization program in May 2023. In total, CyrusOne's ABS offerings have raised $2.6 billion, with 11 assets as collateral.
Fran Federman, executive vice president & chief investment officer at CyrusOne, said: “The strong demand for our five-year and seven-year maturities demonstrates the market’s confidence in our growth trajectory within the data center and services sector. We are committed to leveraging the success of our offerings to increase our market share and enhance the solutions we provide to our customers.”
The data centers being used as collateral are CyrusOne's 11 completed and operating data centers in Sterling, Virginia, and San Antonio, Texas.
In total, those data centers have a critical load power available of 213.6MW and are valued at $3.57bn. They currently house 103 hyperscale and enterprise clients, with an annualized adjusted base rent of $270.7m
In March 2022 KKR and GIP acquired CyrusOne for $15 billion, at the time the largest M&A deal in data center industry history.
Earlier this year, investment giant BlackRock announced that it would be acquiring Global Infrastructure Partners for $3 billion and 12 million shares of BlackRock common stock.
