Vantage Data Centers has raised $1.35 billion in securitized notes, enabling the company to refinance the existing loans in place for three of Vantage's data centers in Northern Virginia and five data centers in Quebec, Canada. The remaining funds will be used for "general corporate needs."
The funding is comprised of $1.026bn five and seven-year Class A notes, C.A. $380m (U.S. $286m) Class A tranche and C.A. $43m (U.S. $31.35m) Class B notes.
This is Vantage's largest securitization so far. Deutsche Bank Securities acted as the Sole Structuring Adviser, with Deutsche Bank, Societe Generale, Truist Securities, and Wells Fargo Securities acting as Joint Active Bookrunning Managers.
The funding also includes a Green Bond designation from Morningstar Sustainalytics. This means that the financing can be used for the following categories: green buildings, energy efficiency, climate change adaptation, renewable energy, pollution prevention and control, sustainable water and wastewater management, research, and development. In addition, Vantage's data centers must aim for a PUE of 1.5 or below, based on a tenant utilization of 50 percent or greater.
“This transaction is Vantage’s ninth securitization financing since 2018. It’s also our fourth green financing bringing our total green loan financings to more than $2 billion,” said Sharif Metwalli, Vantage’s chief financial officer.
Last month saw the Australian pension fund AustralianSuper investing $1.6 billion in acquiring a "significant" minority stake in Vantage Data Centers EMEA. The fund will now be a key shareholder alongside DigitalBridge.
Shortly after, Global Infrastructure Partners (GIP) provided a $450m loan facility to Vantage, proceeds of which will go to expanding Vantage's build-out across North America.
For more information about this news, visit https://vantage-dc.com.