STACK INFRASTRUCTURE: Stack Raises $250m From securitized Notes

Mar 17, 2023 | Posted by Abdul-Rahman Oladimeji

The data center company Stack has completed its most recent structured debt fundraising round. The company revealed the sale of $250 million in securitized notes last week. The price of the notes is a 5.900 percent fixed rate coupon. The firm said it has now raised $2.1 billion in notes through its master trust program, all rated "A-" by Standard & Poor's. According to Heather Paduck, CFO of Stack Americas, Stack has once again shown why it is a highly sought-after partner and continues to capitalize on investor confidence in a quickly changing interest rate environment. This successful deal demonstrates their dedication to supplying capacity to their clients when demand is at its highest and solidifies their position as an industry leader with a continually successful expansion plan.

The notes correlate to electrical capacity and lease payments at eight wholesale data centers in seven US states, according to the pre-sale study from S&P Global Ratings that DCD previously disclosed. The data centers are in Atlanta, Georgia; Portland, Oregon; Dallas, Texas; Chicago, Illinois; New Albany, Ohio; San Jose, California; and Sterling, Virginia. The capacity of the data centers, which total 138MW and 1.917 million square feet, is. The triple-net leases used to finance all the sites have a weighted remaining contract duration of 6.6 years, with the tenant paying rent, taxes, insurance, and power costs. With a maximum term of 25 years, the loan is expected to mature in five years. 

The remainder of the funds will be used for 'other general corporate purposes,' which could include expanding the company's data center footprint by financing turn-key and powered shell facilities. Stack will use some of the funds to pay off a portion of the outstanding balance on the 2019-1 notes, the report claims.