Second Tranche of Investment-Grade Securities Issued in 2021 will Fund New Data Centers and Expansions Across the U.S.
Dallas, TX – October 28, 2021 – DataBank a leading provider of enterprise-class colocation, interconnection, and managed cloud services, announced today that it will issue $330 million of secured notes in its second securitization offering this year.
The new securitization notes add $330M in additional capital and liquidity to DataBank’s balance sheet and will be available for investment in new data center capacity including facilities and campuses in Salt Lake City, Denver, Ashburn and New York.
“This securitization reflects the success of our strategy to develop the largest geographic footprint of multi-tenant, enterprise-grade, edge colocation data centers in the U.S,” said Kevin Ooley, DataBank’s President & CFO. “Previously, only hyperscale data center 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 securitization in 2021, coming just seven months after the company conducted the first-ever securitization for a multi-tenant, enterprise data center provider, raising $658 million in secured notes in March of 2021. Today’s announcement also comes less than a year after DataBank announced the acquisition of zColo, the data center assets of Zayo Group Holdings. Today, DataBank is the leading-edge colocation and interconnect platform with 60+ data centers in 29 metro markets and 20 major interconnect locations.
“The strong reception we received on this financing reflects DataBank’s momentum and leadership in the rapidly evolving edge infrastructure landscape,” said Tom Yanagi, Managing Director of DigitalBridge, DataBank’s lead investor. “This securitization 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. Demand for the securitization was extremely high with 26 unique investors ultimately participating 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.
DigitalBridge (NYSE: DBRG) is a leading global digital infrastructure REIT. With a heritage of over 25 years investing in and operating businesses across the digital ecosystem including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages a $35 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, DigitalBridge has key offices in Los Angeles, New York, London, and Singapore.
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Managing Director, Head of Public Investor Relations
Joele Frank, Wilkinson Brimmer Katcher
Aura Reinhard / Jon Keehner
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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.
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