In the inaugural securitization in an enterprise colocation setting, DataBank, a leading provider of enterprise-class colocation, connectivity, and managed services, today announced that it will issue $658 million of secured notes.

For DataBank, and the industry, this represents a significant milestone. It provides the structure and flexibility for the company to meet the long-term growth and expansion in its colocation, interconnect and cloud platforms. 

The new securitization notes will refinance DataBank’s existing credit facility, providing additional capital to support expansion, while substantially reducing financing costs by more than 50%. 

This securitization and refinancing of previous loans adds more than $200 million in liquidity to DataBank’s balance sheet, providing ample funding for general purposes and continued investment in new data center capacity. In addition, the financing locks in rates for five years and provides a powerful launchpad from which the company can initiate future transactions.

DataBank’s securitization announcement comes on the heels of its acquisition of zColo, the data center assets of Zayo Group Holdings. The resulting footprint effectively positions DataBank as a leading-edge colocation and interconnect platform with 65 data centers in 29 metro markets and 20 major interconnect locations.

“The strong reception we received on this financing from ABS investors reflects the mission critical nature of DataBank’s edge infrastructure,” said Tom Yanagi, Managing Director of Digital Colony.  “Supporting the strategic financing needs of our companies is one of the key pillars of the Digital Colony value-add playbook, so we are pleased to have played a role in the first-of-its-kind securitization financing of Edge Data Centers.  

For more information, please visit: www.databank.com