TierPoint: TierPoint aims to raise $925 million through securitized loans

Jun 29, 2023 | Posted by Abdul-Rahman Oladimeji

TierPoint seeks to raise $925 million by selling A-rated data center revenue notes from Kroll Bond Rating Agency. The exchange is TierPoint's first and is backed by 31 colocation data centers with approximately $397.2 million in annualized monthly frequent revenue and $198.3 million in yearly adjusted net operating income. TierPoint owns nine of these 31 data centers, whereas the remaining 22 are leased.

TierPoint runs 63.5MW of IT capacity across these 584,376 square-foot facilities. The business has over 2,900 customers who are bound by 8,900 contracts. This provisional rating deems the data center company's notes to be of high quality with a low likelihood of default due to credit-related events. It is expected that issuers and obligations in this category will endure difficult times with low credit losses, and it is the third-highest available rating.

The relevant notes are 2023-1 A-1 for $225 million with a variable interest rate due in June 2028, 2023-1 A-2 for $300 million with a six percent interest rate due in June 2026, and 2023-2 A-2 for $400 million with a 6.5 percent interest rate due in June 2030. June 2053 is the ultimate maturity date for all three bonds.