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Capital for DigitalBridge's business has been raised over two separate issuing of security notes, both oversubscribed as investor confidence in digital infrastructure continues to grow.
Founder and Editor, The Tech Capital
October 29, 2021 | 5:00 AM BST
US colocation business DataBank said it will issue US$330 million of secured notes in its second securitisation offering this year, brining the total raised this year alone to $988 million.
The new securitisation notes add $330 million in additional capital and liquidity to DataBank’s balance sheet and will be available for investment in new data centre capacity including facilities and campuses in Salt Lake City, Denver, Ashburn and New York.
Kevin Ooley, DataBank’s President & CFO, said: “This securitisation reflects the success of our strategy to develop the largest geographic footprint of multi-tenant, enterprise-grade, edge colocation data centres in the US.
“Previously, only hyperscale data centre 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 DataBank’s second securitisation in 2021, coming just seven months after the company conducted the first-ever securitisation for a multi-tenant, enterprise data centre provider, raising $658 million in secured notes in March of 2021.
The announcement also comes less than a year after Dallas-based DataBank announced the acquisition of zColo, the data centre assets of Zayo Group Holdings.
Today, DataBank’s portfolio includes 60+ data centres in 29 metro markets and 20 major interconnect locations.
Tom Yanagi, Managing Director of DigitalBridge (NYSE: DBRG), DataBank’s lead investor, said: “The strong reception we received on this financing reflects DataBank’s momentum and leadership in the rapidly evolving edge infrastructure landscape.
“This securitisation 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.
Up tp 26 unique investors participated in the securitisation 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, as well.
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