DataBank has raised more than $300 million in a new round of securitization, its second this year.
The company announced this week that it has $330 million of secured notes in its second securitization offering of 2021.
DataBank said the new securitization notes add additional capital and liquidity to DataBank’s balance sheet and will be available for investment in new data center capacity, including at its 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 US,” said 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 the second such raise DataBank has made this year. In March the company raised more than $750 million in secure revenue notes.
“The strong reception we received on this financing reflects DataBank’s momentum and leadership in the rapidly evolving edge infrastructure landscape,” said 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. 26 unique investors participated 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.
The company has been on an upgrade spree since the March raise, announcing plans to add more than 85,000 sq ft (8,000 sqm) and 12MW of capacity to its locations.