Data center firm Switch has secured more than $5 billion in new debt funding.
The DigitalBridge-owned company this week announced that it has closed on its $4.25 billion sustainability-linked Borrowing Base Facility (BBF) and upsized its Revolving Credit Facility (RCF) to $770 million.
Proceeds from the BBF, which consists of a $3.5bn revolving credit facility and $750m term loan, will primarily be used to fund the development of new projects across four campuses. It will also refinance a portion of the company’s existing acquisition debt incurred as part of its take-private by DigitalBridge and IFM Investors in December 2022.
The company said the BBF will be sustainability-linked and align with sustainability-linked loan principles.
The RCF will fund working capital and general corporate purposes.
“The series of financings we have completed this year ideally position us for growth opportunities at the forefront of cloud, AI, and enterprise, while affirming our commitment to sustainability,” said Thomas Morton, president of Switch. “We are excited to enhance our liquidity position and support our robust development pipeline.”
More than 25 banks participated across both capital raises.
J.P. Morgan and TD Securities served as Co-Structuring Agents and Joint Lead Arrangers on the BBF, with ING Capital and TD Securities serving as Co-Sustainability Coordinators. TD Securities served as Left Lead Arranger on the RCF transaction and is the Administrative Agent for both the BBF and RCF.
Milbank was legal advisor to Switch, and Paul Hastings was the lenders’ counsel on the BBF and RCF transactions.
Founded in 2000, Switch operates its large 'Prime' data center campuses in Austin, Texas; Reno, Las Vegas; Grand Rapids, Michigan; and Atlanta, Georgia. Over the last year, it has filed to expand further in Austin and Atlanta.
DigitalBridge, alongside IFM Investors, took Switch private in an $11bn deal in December 2022. Australian pension fund Aware Super invested $500 million into Switch last year.
The company is reported exploring going public again.
