DataBank Raises $456 Million in Fourth Securitization of the Past Three Years

Financing also represents first green financing and supports its goal of being carbon neutral by 2030

DALLAS, Feb. 15, 2024 /PRNewswire/ -- DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed cloud services, announced today that it has issued $456 million of secured notes that represent its fourth securitization since 2021, and first green financing, bringing the total securitized portfolio to $2.16 billion of investment grade bonds.

One hundred percent of the proceeds will be used to refinance a previous bridge loan put in place to purchase four data centers in the Houston market from CyrusOne in 2022 and to fund development of additional data center capacity across the DataBank platform. The securitization was heavily oversubscribed and included a number of repeat investors as well as nine new investors, indicating strong support for DataBank's strategic plans. 

In order to qualify as a green bond, the facilities being refinanced had to meet specific sustainability criteria for water conservation, carbon emissions reduction, and a low Power Usage Effectiveness (PUE). These projects, as well as others underway across DataBank's portfolio, are all contributing to its goal of being carbon neutral by 2030.

"This financing reflects not only DataBank's commitment to sustainability and efficiency, but also the tremendous growth opportunity ahead of us, and the value and stability of our portfolio's earnings," said Kevin Ooley, DataBank's President & CFO. "It signals the strong endorsement of investors in our strategy, footprint, and ability to execute profitably across that entire portfolio."

Today's announcement follows three previous securitizations: $658M of notes issues in March of 2021 (the first ever securitization for a multi-tenant, enterprise data center provider), $330M of notes issued in October of 2021, and another $715M of notes issued in March of 2023. The company also completed a $2.2 billion recapitalization led by SwissLife Asset Management in 2022. Today, DataBank operates the largest portfolio of data centers in the U.S. with 65+ data centers and 20 major interconnect locations in 27+ metro markets.

Kroll Bond Rating Agency provided an initial rating of the $456 million secured notes which were A- rated. Deutsche Bank Securities acted as Sole Structuring and as a Joint Active Bookrunning Manager. Guggenheim Securities and TD Securities acted as Joint Active Bookrunning Managers in the transaction as well.

About DataBank
Recognized by Deloitte as one of the fastest-growing private U.S. companies in 2023, DataBank helps the world's largest enterprises, technology, and content providers ensure their data and applications are always on, always secure, always compliant, and ready to scale to meet the needs of the artificial intelligence era.

Our edge colocation and infrastructure footprint consists of 65+ "HPC-ready" data centers in 27+ markets, 20 interconnection hubs, and on-ramps to an ecosystem of cloud providers with virtually unlimited reach.

We combine these platforms with contract portability, managed security, compliance enablement, hands-on support, and a guarantee of 100% uptime availability, to give our customers absolute confidence in their IT infrastructure and the power to create a boundless digital future for their business.

To learn more, Follow us on LinkedIn or Subscribe to our YouTube channel. To tour a facility, visit DataBank or call 1(800) 840-7533.

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SOURCE DataBank