Colocation Provider DataBank Secures $350M Credit Facility to Finance Expansion Efforts

DataBank, a Dallas, TX-based colocation and interconnection provider, received a $350 million credit facility to further fuel its expansion efforts.

The financing was provided by TD Securities and included a $175 million 5-year term loan, a $125 million delayed draw facility and a $50 million revolving credit line for new data center capacity at its existing campuses in Salt Lake City, Denver, Atlanta and New York.

The new financing follows a $715 million asset-backed securities issuance in February, which will be used to pay down previously issued debt.

“This additional financing allows DataBank to fully implement its aggressive expansion roadmap,” said Kevin Ooley, President & CFO. “Our ability to swiftly complete this transaction reflects both investors’ confidence in our edge strategy as well as DataBank’s proven ability to execute on its business plans.”

The company enables enterprises, technology, and content providers to deploy and manage their infrastructure, applications and data on the right platform. Its colocation and edge infrastructure footprint consists of over 65 data centers and 20 interconnection hubs in more than 27 markets.

In 2021, DataBank completed two securitizations worth nearly $1 billion, including the first ever securitization for a multi-tenant, enterprise data center provider.

In June 2022, DataBank announced a significant recapitalization in which Swiss Lift Asset Management AG and EDF Invest would be acquiring 27% of DataBank from DigitalBridge for around $1.2 billion in cash from existing investors, including Digital Bridge. This increased to $1.5 billion after private markets firms Northleaf Capital Partners and Ardian joined the round, increasing the ownership to 35%.