Data centre operator CyrusOne has closed a US$687.1 million single asset, single borrower (SASB) commercial mortgage-backed securities (CMBS) loan for its DFW1 data centre in Dallas, Texas.
Morgan Stanley served as lead manager and bookrunner, and Wells Fargo Securities, Goldman Sachs, and KKR Capital Markets served as co-lead managers and joint bookrunners. Global Infrastructure Partners (GIP) also worked closely with the company in this transaction.
“This is CyrusOne’s entrance to the CMBS market, diversifying our debt investor base with strong support from institutional investors," says Fran Federman, executive vice-president and chief investment officer at CyrusOne. "We are grateful to our fixed income investors for their continued support. Through this transaction, we have entered into a new market that will allow us to expand the scope of our permanent financing solutions.”
The transaction is the first SASB securitized financing for a co-location/enterprise data centre since the financial crisis in 2008. This brings the total capital CyrusOne has raised this year to nearly US$12 billion.
The company recently announced the closing of a US$7.9 billion warehouse credit facility, coming after a US$1.8 billion revolving credit facility financing completed in May.
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. GIP also worked closely with the company in these transactions.
Milbank represented the financing sources in connection with the warehouse credit facility.
The warehouse credit facility will primarily fund existing and future development projects in the United States, 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. Accordingly, the pricing on the debt facilities will be adjusted based on achieving target reductions in greenhouse gas emissions.
CyrusOne is a global data centre owner, developer and operator. Headquartered in Dallas, Texas, the company operates over 55 data centres in key digital gateway markets across the US and Europe. Specializing in comprehensive solutions for hyperscale and Fortune 1000 companies, CyrusOne caters to the needs of AI-driven applications and services workloads. The DFW1 data centre serves more than 100 customers.
