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Vantage Data Centers raises $1.3bn in Securitized Notes for North American expansion

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Hyperscale data centre operator Vantage Data Centers has announced that the company raised $1.3 billion in securitized notes.

The notes are split between a five-year issuance and a seven-year issuance and are rated “A-” by Standard & Poor’s. The company said that they generally rank pari-passu with Vantage’s existing outstanding notes.

The proceeds from this transaction will mainly be used to refinance outstanding debt and will reduce Vantage’s overall cost of capital by approximately 30% on average across its capital structure and extend debt maturities. This financing also provides cash for further investment, according to Vantage Data Centers.

“The current market environment proved extremely advantageous for Vantage and our investors to lower our capital costs extend maturities and provide funding for growth opportunities,” said Sharif Metwalli, Vantage’s CFO.

“Having access to capital at today’s attractive market rates gives us the ability to redeploy the realised savings with additional investments to grow the business across key regions throughout North America where our customers’ data centre requirements continue to increase.”

In July, the data centre firm closed its acquisition of Next Generation Data (NGD) from InfraVia along with the two founders of NGD.

Cardiff marks Vantage’s sixth European market following its acquisition of Etix Everywhere and entrance into Berlin, Frankfurt, Milan, Warsaw and Zurich in February 2020.

The campus totals 180MW, including an existing 72MW facility and 108MW of expansion capacity. Joining Vantage Europe is the NGD team, including former CEO Justin Jenkins who will serve as Chief Operating Officer of Vantage Europe and president of Vantage UK.

In that same month, Colony Capital Inc. invested $1.2 billion in Vantage Data Centers’ portfolio, which includes 12 stabilised North American data centres. Citi served as financial advisor to Vantage.