Data center firm CyrusOne has secured nearly $8 billion in debt financing.
The KKR-owned company this week announced the closing of a $7.9 billion Warehouse Credit Facility.
The new facility is incremental to the $1.8 billion Revolving Credit Facility financing completed in May, providing the company with approximately $9.7 billion of additional debt capital raised.
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 general corporate purposes.
“The successful closing of this significant financing, combined with our strong business outlook for growth, expands our ability to deliver world-class digital infrastructure projects that meet the growing needs of our customers while positioning CyrusOne for future investment and development opportunities,” said Eric Schwartz, CyrusOne CEO. “We are extremely grateful to our financial partners for their continued support of CyrusOne.”
Fran Federman, CyrusOne's chief investment officer, added: "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.”
CyrusOne said both facilities are sustainability-linked and align with sustainability-linked loan principles; the pricing on the facilities will be adjusted based on the company achieving target reductions in Greenhouse Gas Emissions.
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.
CyrusOne has dozens of data centers across 13 markets in the US. 2024 alone has seen the company file plans for new campuses in Chicago, Illinois, and New Albany, Ohio, as well as breaking ground on new facilities in San Antonio, Texas.
In Arizona, BizJournal reports Mesa's design review board will hear a proposal this week for CyrusOne's new five-building campus in the Phoenix suburb. The buildings would span 286,530 square feet (26,620 sqm) each, for a total of around 1.4 million sq ft (130,000 sqm). CyrusOne acquired the land from Sunbelt Investment Holdings Inc. in 2018 for $19.3m, and filed plans for the campus last year.
