US data center firm Flexential is moving to secure $1.4 billion in asset-backed securities (ABS) financing, backed by a 28-site-strong data center portfolio spanning 14 markets across 13 states.

According to a pre-sale report from ratings agency KBRA, the financing comprises two series of notes across four classes. The combined initial principal balance of the two notes is expected to total $1.21 billion, with final allocation determined at pricing.

The funds will be used to cover closing costs and fully pay off prior debts.

KeyBank National Association is the servicer/back-up manager, with Wilmington Trust, National Association, as the indenture trustee. Deutsche Bank will act as the structuring advisor.

Flexential was formed in 2017 when investment firm GI Partners merged Peak10 and ViaWest. In August last year, GI pumped further investment into Flexential and secured new external investment for its data center developments across the US.

KBRA said the 28-data center portfolio securing the transaction included nine fully owned facilities, 18 leased properties, and one facility with a 99-year ground lease, which the ratings agency treated as “owned” for rating purposes. This portfolio comprises around 1.8 million square feet (167,225 sqm) of data center floorspace, with approximately 199MW of critical capacity.

The data centers generate approximately $663.3 million in annualized revenue and $353.2 million of annualized adjusted net operating income.

Flexential’s portfolio spans Atlanta, Charlotte, Cincinnati, Dallas, Denver, Las Vegas, Louisville, Minneapolis, Nashville, Phoenix, Portland, Raleigh, Salt Lake City, and Tampa.

KBRA said 70 percent of the data center operators’ annual revenue was concentrated in Portland, Denver, Atlanta, Dallas, and Nashville.

Last year, Flexential completed an $800 million ABS fundraise to support its growth and investment strategy.