DataBank announced its first-ever securitization offering, issuing $658 million in secured notes—the first of its kind in the enterprise data center colocation sector. The offering will refinance the company’s existing credit facility, reducing financing costs by over 50% and adding more than $200 million in liquidity to support expansion, new data center capacity, and general corporate purposes. The financing also locks in rates for five years, providing flexibility for future transactions.
This securitization follows DataBank’s acquisition of zColo, expanding its footprint to 65 data centers across 29 metro markets and 20 interconnect locations. Investor demand was strong, with 51 participants and all tranches oversubscribed. The notes received an initial rating from Kroll Bond Rating Agency. Deutsche Bank Securities served as sole structuring advisor and joint bookrunner, with Guggenheim Securities as joint bookrunner.
DataBank executives highlighted the milestone as a key step in aligning multi-tenant enterprise colocation models with the financing structures historically reserved for hyperscale data centers. Digital Colony, a major investor and partner, noted the transaction enhances shareholder value while supporting the growth of customer edge workloads.
