DataBank announced the completion of two financing transactions totaling $1.45 billion, including an $800 million revolving credit facility and a $650 million expansion of the financing package supporting its Red Oak, Texas data center campus.
The company said the new $800 million corporate revolving credit facility matures in 2031 and will be used for general corporate purposes, including working capital requirements, capital expenditures, and liquidity support for future growth initiatives and acquisitions.
The revolving credit facility was arranged by a banking syndicate led by Citizens Bank, with Citibank, MUFG Bank, PNC Bank, TD Securities, Truist Securities, U.S. Bank, and Wells Fargo Securities serving as joint lead arrangers.
DataBank also completed a $650 million increase to its existing construction financing for the Red Oak campus, bringing the total financing package for the Texas development to $2.65 billion. The expansion supports the construction of a fourth building on the campus, adding 60 megawatts of information technology capacity.
The additional financing includes $400 million in bank financing and $250 million of notes issued through DataBank’s first private placement transaction. MUFG served as lead placement agent, with TD Securities and Barclays acting as joint placement agents. Citibank, Citizens Bank, and National Bank of Canada served as co-placement agents.
DataBank said the private placement broadens its institutional investor base and diversifies funding sources for future development projects.
Davis Polk & Wardwell served as legal counsel to DataBank on both transactions.
DataBank provides colocation, interconnection, and managed infrastructure services and operates more than 70 data centers across over 25 markets. The company serves enterprise, technology, and content providers with infrastructure designed to support artificial intelligence workloads and high-performance computing applications.
KEY QUOTES:
“This new revolving credit facility strengthens our financial flexibility and reflects the confidence our lending partners have in DataBank’s business model and long-term growth trajectory.”
Raul K. Martynek, Chief Executive Officer of DataBank
“As demand for data center capacity continues to accelerate, having a robust and flexible capital structure is essential. This revolver, combined with the upsized Red Oak financing and our inaugural private placement, positions DataBank to move decisively as we expand our platform and deepen our relationships with hyperscale, cloud, and enterprise customers.”
Kevin Ooley, President and Chief Financial Officer of DataBank
