CyrusOne raises $7.9 Billion in new debt capital

CyrusOne raises $7.9 Billion in new debt capital

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Global data centre operator CyrusOne has announced the closing of a $7.9 billion Warehouse Credit Facility.

The executed transaction is in addition to a $1.8 billion Revolving Credit Facility financing completed in May, meaning the KKR-backed operator has now raised approximately $9.7 billion for the expansion of its data centre portfolio.

Eric Schwartz, CyrusOne’s CEO said the new financing expands its ability to deliver world-class digital infrastructure projects that meet the growing needs of its customers.

In addition to expanding its portfolio through the new funds, Schwartz said that Cyrus One has a strong business outlook for growth.

"We are pleased to announce the completion of the Warehouse Credit Facility and the Revolving Credit Facility, both of which will provide CyrusOne with attractively priced capital and enhanced liquidity," said Fran Federman, CyrusOne's Chief Investment Officer.

"Our ability to raise these debt facilities and the tremendous interest that we have received from the lender community are a testament to the strength of our business and the market’s confidence in our ability to continue to build on the significant momentum we have achieved thus far,” Federman added.

The Warehouse Credit Facility will primarily fund existing and future development projects in the US, while the global Revolving Credit Facility will be used for working capital and for general corporate purposes.

Both facilities are sustainability-linked and align with sustainability-linked loan principles.

The pricing on the debt facilities will be adjusted based on Cyrus One achieving target reductions in Greenhouse Gas Emissions.

In the past year, CyrusOne has taken steps to further meet demand for AI while enhancing these sustainability goals.

In 2023, it launched Intelliscale, a state-of-the-art AI workload-specific data centre solution developed to address the rapidly growing needs of AI applications and services.

It has also maintained a strong commitment to sustainability, and last year announced its plan to accelerate its net-zero carbon pledge by a decade to 2030.

Morgan Stanley, TD Securities and KKR Capital Markets served as lead arrangers for the Warehouse Credit Facility, while Wells Fargo served as lead arranger for the Revolving Credit Facility.

Global Infrastructure Partners also worked closely with the company in connection with these transactions, Cyrus One revealed.

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