Denver-based wholesale colocation provider Stack Infrastructure is looking to raise $300 million in a financing round to cover its operational costs and expand its physical footprint.
According to American Banker, the company, which specializes in built-to-order facilities for hyperscalers including Amazon, Microsoft, Apple and Google, raised $1bn in a financing round last year, and will use the proceeds from this new round to repay the outstanding balance, as well as placing $142 million in a prefunding account to build more data centers.
Investing in growth
The 2020-1 offering of Class A-2 notes was rated by S&P Global Ratings with anticipated maturities of five years, and financial service provider Guggenheim Securities will be the sole structuring agent of the securitization.
The notes will be backed by ownership interest in Stack’s seven data center locations and tenant lease payments, of which the average contract term is approximately 7.1 years, according to S&P’s report.
Created at the start of 2019 and owned by private investment firm IPI, itself a joint venture of Iconiq and funded by real estate fund manager Iron Point, it is thought that Stack has approximately $550 million of equity invested in its six multi tenant data centers.
In an interview with DCD last year, the company’s CEO Brian Cox explained that the company’s wholesale focus mirrors the industry - in that it chooses to focus on wholesale colocation rather than divide its business between wholesale and retail customers - or try to compete with cloud providers.
Cox explained that the company’s data centers - currently in Dallas Fort Worth, Columbus, Atlanta, Chicago, Portland and Silicon Valley, with plans to build in Phoenix, Arizona and Prince William County, Northern Virginia; as well as to expand its Atlanta, Chicago and San Jose sites - are developed based on where its typical clients want it to be - in cloud connectivity hotspots.