Switch closes back-to-back ABS issuances in
its first securitization offerings
LAS
VEGAS, June 24, 2024 /PRNewswire/
-- Switch, the premier provider of AI, cloud and
enterprise data centers, today announced the successful completion
of two consecutive, asset-backed securities (ABS) transactions. The
inaugural ABS issuance, totaling $752
million closed March 14, 2024,
followed by the second issuance of $940.3
million, which closed on June 17,
2024. These two issuances make Switch the largest data
center ABS issuer year-to-date with a total of nearly $1.7 billion.
"Successfully executing these transactions marks a strategic
milestone in the evolution of Switch's capital structure, giving
the company access to new investors, additional borrowing capacity
and a lower overall cost of debt," said Thomas Morton, President of Switch.
"Capitalizing on the strong investor demand, we were able to
execute both transactions with oversubscription levels across all
classes of our bonds and on the second issuance we were able to
tighten pricing across our Class A and Class B bonds," said
Madonna Park, Chief Financial
Officer of Switch. "Given the success of these two issuances,
combined with our robust portfolio of development and stabilized
assets, we expect to continue to be an active issuer in the ABS
market."
Net proceeds after transaction fees and expenses will be used to
refinance a portion of company's take-private mortgage loan, which
was put in place at the time Switch was acquired by DigitalBridge
and IFM Investors in December
2022.
A wholly owned subsidiary of Switch, ABS Issuer, LLC established
its Master Trust March 14, 2024, with
the closing of its first issuance of $752
million. The offering included two classes of notes,
$657.6 million of Class A and
$94.2 million of Class B. All notes were rated by DBRS-Morningstar with
the Class A notes rated A(low) and the Class B notes rated
BBB(low). All series of notes in this issuance were designated as
green bonds under International Capital Markets Association Green
Bond principles in accordance with Switch's Green Financing
Framework. The deal was led by Morgan Stanley who acted as the Sole
Structuring Advisor.
Switch followed on its inaugural issuance in March, with the
closing of its second issuance on June 17,
2024, for $940 million. The
offering included three classes of notes, $671.5 million of Class A, $94.8 million of Class B and $174 million of Class C.
All notes were rated by DBRS-Morningstar with the Class A
notes rated A(low), Class B notes rated BBB(low) and Class C notes
rated BB(low). All series of notes in this issuance were designated
as green bonds under International Capital Markets Association
green bond principles in accordance with Switch's Green Financing
Framework. The deal was led by Morgan Stanley and MUFG (Mitsubishi
UFJ Financial Group) as Co-Structuring Advisors.
In addition to Co-Structuring Advisors Morgan Stanley and MUFG,
TD Securities (USA), LLC and RBC
Capital Markets, LLC, acted as Joint Bookrunners. Société Generale,
Truist Securities, Scotiabank, Santander, Citizens Capital Markets,
Goldman Sachs and Guggenheim acted as Passive Bookrunners. ING,
Natwest Markets, Standard Chartered Bank and Zions Capital Markets
acted as Co-Managers.
About Switch
Switch, Inc. founded in 2000 by CEO
Rob Roy, stands at the forefront as
the premier data center designer, builder and operator. As the AI,
cloud and enterprise data center experts, Switch delivers
unparalleled solutions for the most discerning clients worldwide.
With a commitment to robustness, scalability and sustainability,
Switch offers a comprehensive portfolio encompassing highly dense,
liquid-cooled AI environments, hyperscale cloud infrastructure and
industry-leading, highly secure enterprise data centers. To learn
more, visit switch.com and connect with us on
LinkedIn, Facebook and X.
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SOURCE Switch, Ltd.