DataBank has completed two financing transactions totalling $1.45bn, including an $800m revolving credit facility and a $650m increase to its existing construction financing for its data centre campus in Red Oak, Texas, US.
The $650m upsize to DataBank’s Red Oak campus financing brings total funding for the project to $2.65bn.
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This latest tranche supports the construction of a fourth building on the site, intended to add 60MW of additional IT capacity.
Of this total amount, $400m is in bank financing led by the same institutions involved in DataBank’s previously announced campus financing, and $250m comes from a private placement.
MUFG acted as Lead Placement Agent for the private placement, joined by TD Securities (USA) and Barclays as Joint Placement Agents. Citibank, Citizens Bank, and National Bank of Canada acted as Co-Placement Agents.
DataBank CEO Raul Martynek said: “This new revolving credit facility strengthens our financial flexibility and reflects the confidence our lending partners have in DataBank’s business model and long-term growth trajectory.”
DataBank president and chief financial officer Kevin Ooley said: “As demand for data centre capacity continues to accelerate, having a robust and flexible capital structure is essential.
“This revolver, combined with the upsized Red Oak financing and our inaugural private placement, positions DataBank to move decisively as we expand our platform and deepen our relationships with hyperscale, cloud, and enterprise customers.”
The $800m corporate revolving credit facility, which matures in 2031, will be used for general corporate purposes such as working capital, capital expenditures, and to help support plans for further expansion and acquisitions.
A consortium of banks led by Citizens Bank, arranged the revolving facility, with Citibank, MUFG Bank, PNC Bank, TD Securities (USA), Truist Securities, U.S. Bank, and Wells Fargo Securities participating as Joint Lead Arrangers.
Legal advice for both transactions was provided by Davis Polk & Wardwell.
DataBank operates more than 70 data centres across over 25 markets and manages various interconnection and cloud on-ramps.
