Sabey Data Centers is looking to raise $150 million to expand its data center footprint in the US.
The fundraising, by Sabey Data Center Issuer LLC series 2024-1, is an ABS securitization that is backed by first mortgage liens on the company's data center, data center tenant leases, security interests in certain transaction accounts, and equity interest in Sabey's asset entities.
The Series 2024-1 shares collateral with Sabey's previous securitizations including 2020-1, 2020-2, 2021-1, 2022-1, 2022-2, and 2023-1. Since the closing of 2023-1, Sabey has added around 40.7MW of turnkey capacity to its collateral, including data centers in Ashburn, Virginia; Quincy, Washington; Seattle East, Washington; and Columbia, Washington, bringing its total to 140.7MW of data center capacity.
The securitization has been awarded a class A-2 rating by S&P Global. S&P cites the companies relatively long contract terms with tenants, staggered lease maturities, the high credit rating of tenants and the low cost of renewable power in Washington as among the strengths of the securitization.
The $150m will have a maximum Loan-to-Value (LTV) of 70 percent and is anticipated to mature in five years, with a legal maturity of 25 years. Including this latest fundraising, Sabey's total debt outstanding will be around $1.55bn. S&P values Sabey's portfolio at $2.452bn, up from 2.144bn in 2023.
The fundraising is set to close on April 29. Guggenheim Securities LLC is acting as structuring advisor and active book-running manager.
Last month, privately owned cloud computing provider Vultr announced that it was expanding its Seattle cloud data center region at Sabey's SDC Columbia location. The Sabey data center in question is located in East Wenatchee and is supplied with hydropower from the Douglas County Public Utility District, enabling Vultr to deploy Nvidia HGX H100 GPU clusters at the site while powered by renewable energy.
Sabey also recently completed the third building at SDC Columbia out of a potential nine.
In March 2024, Sabey also signed a partnership with modular and containerized data center company Eclairion. Eclairion, based in Paris, specializes in ecological, modular and high-density data centers for high-performance computing (HPC) and artificial intelligence (AI).
Sabey purchased 60 acres of land in Umatilla, Oregon, for a 100MW+ data center development in September 2023.
