CyrusOne has issued two series of securitized notes valued at $1.175 billion in total.
Both Series 2024-2 and Series 2024-3 have been issued a rating of A-2 by S&P Global Ratings, and are each 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.
The funding round is set to close on May 20, 2024.
CyrusOne's collateral against the notes includes the company's real property interests in data centers, personal property and fixtures located on the data centers, tenant leases, reserves and escrows, certain transaction accounts, and the equity interest in each of the asset entities.
The data centers included are CyrusOne's 11 completed and operating data centers in Sterling, Virginia and San Antonio, Texas. Three new data centers in Sterling will be added to the master trust at closing.
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.
According to the transaction overview, CyrusOne will be using the proceeds from this funding round to "acquire the equity interest of the added property and for general corporate purposes."
These latest notes are the fourth and fifth issuance for the master trust, and the collateral will be shared with the previous 2023-1, 2023-2 and 2024-1 series. In total, the company will have raised $2.592bn in notes across the five rounds.
The Indenture trustee for the round is Citibank and the servicer is KeyBank. Arrangers include Citigroup Global Markets Inc., KKR Capital Markets LLC, and Wells Fargo Securities LLC.
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.
