Cologix: Cologix Concludes a $144.7 Million Asset Securitization Deal

Apr 20, 2023 | Posted by Abdul-Rahman Oladimeji

Asset-backed securities worth $144.7 million have been closed by Cologix. Through a private placement transaction that was completed on April 5, the North American and Canadian hyperscale Edge data center and network-neutral links provider made a deal with secured notes. Cologix's chief financial officer, Rachel Stack, stated that these financings demonstrate how Cologix's 12-year history of strong asset performance and profitability as well as its close connections to numerous capital markets, offer stability and predictability, even in a setting of rising interest rates. This deal demonstrates investors' trust in the company's ability to acquire and develop new facilities while producing profitable results across their North American portfolio. The company's strategy is to offer hyperscale and digital edge data centers with an extensive interconnected ecosystem of 700+ networks, 350+ cloud providers, and 30+ public cloud onramps.

The extra revenue will be used to increase capacity in Cologix's Scalelogix, the company's hyperscale brand, and digital Edge data center portfolio in Canada, including Montreal, Toronto, and Vancouver. The new secured notes have a fixed interest rate. This transaction is Cologix's second securitization of its Canadian assets and third such loan since December 2021. The company's first offering in the US was for $1.13 billion in December 2021, and a second one was for $655.2 million in Canada. The transaction's sole structuring agent and book-running manager was TD Securities Inc. In 11 different regions of North America and Canada, including Ashburn, Virginia, Dallas, Texas, Jacksonville, Florida, Lakeland, Minnesota, New Jersey, Silicon Valley, Montreal, Toronto, and Vancouver, Cologix currently runs over 40 data centers.