DataBank: DataBank Obtains Credit Facility of $325 Million

Apr 07, 2023 | Posted by Abdul-Rahman Oladimeji

To help support its development aspirations, US colocation provider DataBank has obtained a new $325 million credit line. The facility, led by TD Securities, consists of a $50 million conventional credit line, a $125 million deferred draw term loan, and a $175 million five-year term loan. The finance, according to the business, will be put to use for general operating capital and success-based CapEx projects associated with the deployment of new and increased data center capacity at the company's facilities in Salt Lake City, Denver, Atlanta, and New York. This extra funding enables DataBank to pursue its aggressive expansion strategy fully, according to President and CFO Kevin Ooley. They were able to promptly consummate this acquisition because investors had faith in its Edge strategy and DataBank had a track record of successfully carrying out its business goals. 

A $715 million asset-backed securities (ABS) offering in February was followed by the new financing. This cash will be used to settle previously issued debt and add liquidity to DataBank's balance sheet in order to fund the expansion of its Salt Lake City, Denver, Atlanta, and New York data center campuses' capacity. DataBank secured another $1.09 billion asset-backed loan in 2021; this loan must be repaid in the third quarter of 2026. DataBank announced a substantial recapitalization in June 2022, in which Swiss Lift Asset Management AG and EDF Invest would buy 27 percent of DataBank from DigitalBridge for around $1.2 billion in cash from current investors, including Digital Bridge. Once Northleaf Capital Partners and Ardian joined the round, this amount climbed to $1.5 billion, bringing the ownership to 35%. 

When the Investment Management Company of Ontario (OMCO) declared its desire to contribute an additional $450 million to DataBank as part of the recapitalization in October 2022, the firm obtained additional funding.