STACK INFRASTRUCTURE: Stack Infrastructure intends to raise $100 million in secured notes

Jul 26, 2023 | Posted by Abdul-Rahman Oladimeji

Stack Infrastructure seeks to raise $100 million by issuing securitized notes. After raising $250 million in March, this will be Stack's second fundraising round this year and sixth overall. It will begin on July 24.

The notes have received an A-2 rating from S&P Global. This is presently set at $100 million, but it has the potential to increase to $250 million. The fundraising campaign is anticipated to conclude on July 28. The securitized notes have a five-year anticipated repayment period and a 25-year legal maturity. The funding is predominantly supported by Stack's data center portfolio, which has not added any new assets and is valued at approximately $2.63bn, the same as it was in March. The data centers are located in Atlanta, Georgia; San Jose, California; Chicago, Illinois; Portland, Oregon; New Albany, Ohio; Dallas, Texas; and Sterling, Virginia, with a total capacity of 138MW and 1.917 million square feet.

If the current financing round is successful, Stack Infrastructure will have raised $5.75 billion in securitized notes since 2019, of which $567 million will have been repaid. S&P Global views the long contract terms and high value of the present tenants at Stack's data centers, as well as the historically low customer churn rates, as significant strengths of the transaction.