Data center investment firm Cloud Capital last week announced the successful closing of its $1.325 billion asset-backed securities (ABS) issuance. The proceeds of the transaction will be used to refinance existing debt as well as for general corporate purposes. The notes are backed by four stabilized data center assets in Northern Virginia and Minneapolis.
"We are proud to announce the successful issuance of Cloud Capital's first asset-backed security, achieving the highest rating of any data center ABS issuance under S&P Global Ratings new data center ratings methodology thanks to the robustness of our underlying assets and our team's ability to execute on a strategic vision,” said Hossein Fateh, founder and CEO of Cloud Capital. “It reflects our commitment to providing our sophisticated institutional investors with stable, high-performing opportunities in one of the most essential sectors globally. We are excited to set a new standard for financing in the digital infrastructure sector.”
Cloud Capital's chief investment officer, Shariar Mohajer, added: "This successful issuance highlights our ability to continually unlock value in our portfolio while delivering innovative capital markets solutions. The issuance was met with significant demand from investors, with the five-year and seven-year senior tranches and the five-year subordinated tranche all oversubscribed due to the strong credit profile and high-quality underlying assets."
