Vantage Data Centers closes CDN $380M Canadian offering

CPE News

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CPE News (10.7.2023) – Vantage Data Centers has raised US $1.35 billion in securitized notes.

The notes include US $1,026 million five- and seven-year Class A Term Notes (Series 2023-1 A-2a and Series 2023-2 A-2), CDN $380 million Canadian dollar Class A tranche (Series 2023-1 A-2b, ~$286 million USD equivalent) and US $43 million Class B Notes (Series 2023-1 B). The Class A Notes & Class B notes are rated A- and BBB- respectively by Standard & Poor’s.

Proceeds are primarily being used to refinance existing financings in place for three data centers on the company’s flagship Northern Virginia campus and five data centers in Quebec, as well as to fund general corporate needs.

Deutsche Bank Securities acted as sole structuring advisor.

Canadian investors subscribed 28% of the Canadian offering.

Backed by DigitalBridge, Public Sector Pension Investment Board (PSP Investments), and TIAA Investments, Vantage Data Centers is a leading global provider of hyperscale data center campuses.

DigitalBridge (NYSE: DBRG) owns 13% of Vantage.

photo credit: Vantage Data Centers

News Release

Vantage Data Centers Raises USD$1.35 Billion in Securitized Notes for North American Platform

Transaction represents the company’s largest debt transaction to date and its fourth green financing

DENVER (Oct. 5, 2023) – Vantage Data Centers, a leading global provider of hyperscale data center campuses, today announced​​ that the company has raised USD$1.35 billion in securitized notes. The notes include (i) $1,026M five- and seven-year Class A Term Notes (Series 2023-1 A-2a and Series 2023-2 A-2), (ii) C$380M Canadian dollar Class A tranche (Series 2023-1 A-2b, ~$286M USD equivalent) and (iii) $43M Class B Notes (Series 2023-1 B). The Class A Notes & Class B notes are rated A- and BBB- respectively by Standard & Poor’s.

The proceeds from this transaction are primarily being used to refinance existing financings in place for three data centers on the company’s flagship Northern Virginia campus and five data centers in the province of Quebec, Canada, as well as to fund general corporate needs.

Deutsche Bank Securities acted as Sole Structuring Advisor. In addition to Deutsche Bank, Societe Generale, Truist Securities and Wells Fargo Securities acted as Joint Active Bookrunning Managers on the transaction. Additionally, this transaction achieved a Green Bond designation via a Second-Party Opinion (SPO) from Morningstar Sustainalytics in September 2023. For additional details, please see the company’s Green Bond Framework.

“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. “This financing provides an even stronger financial position for our North American platform and enables us to continue scaling the business to meet customer demand in an environmentally friendly way. We appreciate the ongoing support and partnership from our lead investor, DigitalBridge, and their confidence in us to grow the business to not only meet our customers’ IT requirements but also to align with our customers’ sustainability goals.”

“Vantage is delivering on its growth strategy, and despite inflation and the challenging capital markets, investors continue to be confident in Vantage’s ability to execute as evidenced by this securitization,” said Jon Mauck, senior managing director at DigitalBridge. “We look forward to further building on this momentum to drive value for our stakeholders, not only in North America, but around the world. Vantage is uniquely positioned for long-term growth with a leading digital infrastructure platform designed for the world’s preeminent hyperscalers and cloud providers.”

Vantage recently announced that AustralianSuper, Australia’s largest pension fund, will invest €1.5 billion to acquire a significant minority stake in Vantage’s EMEA business, joining DigitalBridge as a key shareholder. The investment will accelerate Vantage’s ability to scale its footprint across the EMEA region to support customer demand.

The notes have not been, and will not be registered, under the Securities Act of 1933, as amended, and may not be offered or sold absent such registration, or an applicable exemption from the registration requirements thereunder. This press release is neither an offer to sell, nor a solicitation of an offer to buy any notes, nor shall there be any sale of the notes in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Vantage Data Centers

Vantage Data Centers powers, cools, protects and connects the technology of the world’s well-known hyperscalers, cloud providers and large enterprises. Developing and operating across five continents in North America, EMEA and Asia Pacific, Vantage has evolved data center design in innovative ways to deliver dramatic gains in reliability, efficiency and sustainability in flexible environments that can scale as quickly as the market demands.

For more information, visit https://www.vantage-dc.com.

About DigitalBridge

DigitalBridge (NYSE: DBRG) is a leading global alternative asset manager dedicated to investing in digital infrastructure. 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 over $70 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, Florida, DigitalBridge has key offices in New York, Los Angeles, London, Luxembourg and Singapore.

For more information, visit: www.digitalbridge.com.

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Press Contacts
Mark Freeman
Vantage Data Centers
mfreeman@vantage-dc.com
+1-202-680-4243

Robin Bectel
REQ for Vantage Data Centers
vdc@req.co
+1-703-287-7827