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Cologix planning $1.1bn data centre ABS note

The securitisation is based on 17 data centres with a combined critical load power of 36,638 kilowatts.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

December 09, 2021 | 6:30 AM GMT

North American data centre operator Cologix is planning to raise a US$1.1 billion Asset-Backed Security (ABS).

The securitisation is based on 17 data centres which include fee simple ownership interests in six (53.1% of net operating income) multi-customer enterprise data centres located in four markets and leasehold interests in 11 (46.9% of net operating income) multi-customer enterprise data centres located in four markets, according to Kroll Bond Rating Agency (KBRA).

The 17 data centres are comprised of approximately 299,600 square feet of data centre space and can provide approximately 36,638 kilowatts of critical load power to customers. The tenants include total of 1,064 unique customers subject to 12,155 billing items.

The transaction will issue notes through four classes. The deal benefits from credit enhancement from overcollateralisation, subordination, a senior interest reserve account and excess spread.

Deutsche Bank Securities Inc. I serving as sole structuring advisor and joint bookrunner whilst Trimont Real Estate Advisors, LLC is serving as servicer/back-up manager.

Denver-based Cologix was not immediately available for comment on the securitisation.


Transaction structure. Source: KBRA

Cologix was founded in 2010 and is led by an experienced management team, including a president and CEO, each with 20 years of experience in the global communications sector. The company and its affiliates operate 37 data centres, including 17 data centres in the US.

The US data centres include 15 carrier hotels and annexes and two hyperscale edge facilities. Stonepeak Infrastructure Partners acquired a majority interest in Cologix in March 2017.

Stonepeak Infrastructure Partners has over $39 billion of assets under management, and its global portfolio includes investments in a variety of companies including Vertical Bridge and ExteNet, in addition to Cologix.

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Founder and Editor, The Tech Capital

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