Data center provider Global Switch has completed two bond transactions, raising a total of £405m (US$662.78m). The company issued its inaugural €600m (US$824.88m) seven-year bond in 2011.

With the assignment of a BBB credit rating from Standard & Poor’s in November to complement the existing investment grade ratings from Fitch and Moody’s, the company announced its intention to conduct investor meetings in Europe and Australia. On the back of the positive response to these meetings, Global Switch said it was able to build order books supporting the successful pricing of two bonds at the tight end of initial price talk:

A £350m bond which matures on December 13, 2022, paying a coupon of 4.38%. Joint bookrunners were Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs and HSBC.

An AUD100m bond which matures on December 23, 2020, paying a coupon of 6.25%. Joint bookrunners were Commonwealth Bank of Australia, Deutsche Bank and HSBC.

Proceeds of the transactions will be used to pay an exceptional dividend of up to £600m to Global Switch’s parent company, Aldersgate Investments Limited.

John Corcoran, executive chairman of Global Switch, said the company now has a “more appropriate” long-term capital structure, and has demonstrated its access to the deep liquidity of the international bond markets.

“(We) were able to take advantage of a low interest rate environment to reduce our cost of capital,” Corcoran said.

Last month Global Switch announced it will build a SGD$300m (US$238.28m), 25,000 sq m data center in Singapore after it gained planning permission from JTC Corporation.