US colocation firm DataBank has secured more than $1 billion in asset-backed securitization funding.
The company this week announced it has issued $1.1bn of secured notes into a new master trust, funded by 38 investors.
The proceeds will be used to refinance previous loans put in place to construct DataBank’s ATL4, IAD3, and LGA3 facilities and to fund development of additional data center capacity across the US. All three data centers were constructed and leased almost entirely to hyperscale cloud and emerging hyperscale providers.
“This financing reflects DataBank’s unique ability to support both hyperscale and enterprise customers,” said Kevin Ooley, DataBank’s president & CFO. “It also signals the value and stability of our portfolio’s earnings, our ability to execute profitably across that entire portfolio, and the strong endorsement of investors.”
The deal represents DataBank’s fifth overall securitization since 2021, bringing its total securitized portfolio to $3.23bn of investment-grade bonds.
The issuance is also DataBank’s second green bond financing and its first for hyperscale facilities.
The new ABS trust is also the first to be dual-rated by both S&P and Moody’s, representing Moody’s first data center ABS.
DataBank operates more than 65 data centers across the US in 25 metro markets. The company has previously announced four securitizations: a $456 million Green Bond financing in February 2024; $715m of notes issued in March 2023, $330m of notes issued in October 2021, and $658m of notes issued in March 2021.
Deutsche Bank Securities acted as Sole Structuring and as a Joint Active Bookrunning Manager. Guggenheim Securities and TD Securities also acted as Joint Active Bookrunning Managers in the transaction.