Cologix has closed a $195 million CAD (US$144.7m) asset-backed securitization.
The North American and Canadian network-neutral interconnection and hyperscale Edge data center company made a deal with secured notes through a private placement transaction that was closed on April 5.
Rachel Stack, Cologix’s chief financial officer, said: “These financings highlight that Cologix's 12-year track record of strong asset performance and profitability and deep relationships across multiple capital markets provide stability and predictability, even in an escalating interest rate environment.
“This transaction clearly validates investors' confidence in our strategy to provide hyperscale and digital edge data centers with a robust interconnection ecosystem of 700+ networks, 350+ cloud providers and 30+ public cloud onramps as well as our ability to acquire and develop new facilities while delivering profitable results throughout our North American portfolio.”
The new secured notes have a fixed interest rate, and the additional liquidity will be used to expand capacity in Cologix’s Scalelogix - the company’s hyperscale brand - and digital Edge data center portfolio in Canada including Montreal, Toronto, and Vancouver.
This transaction marks Cologix’s third such loan since December 2021 and the second securitization of its Canadian assets. The company’s inaugural issuance in the US was for $1.13 billion in December 2021, followed by a second in Canada for US$655.2m (CA$883m). TD Securities Inc acted as the sole structuring agent and bookrunning manager in the transaction.
Cologix currently operates over 40 data centers in 11 regions across North America and Canada including Ashburn, Virginia; Columbus, Ohio; Dallas, Texas; Jacksonville, Florida; Lakeland, Florida; Minneapolis, Minnesota; New Jersey, Silicon Valley, Montreal, Toronto, and Vancouver.