Rowan Adds $1.55B in Financing Capacity for Data Center Development
Rowan Digital Infrastructure has secured $1.545 billion in additional corporate financing capacity as it expands its U.S. data center development pipeline. The transactions include a $600 million increase in its holding company term loan, a $590 million revolving credit line and a $355 million letter of credit facility.
Apterra Infrastructure Capital led the term loan expansion, which increased Rowan’s existing corporate facility to $900 million from $300 million. Citibank led the two new facilities and serves as administrative agent. The lender group includes Mizuho, MUFG, Goldman Sachs Bank USA, Société Générale, Sumitomo Mitsui Banking Corp. and Huntington National Bank.
The revolving credit line lets Rowan borrow, repay and borrow again as development costs arise. The separate letter of credit facility helps the company meet obligations such as utility interconnection deposits and equipment vendor requirements without tying up cash. Subject to certain conditions, Rowan could increase the revolving line to $2 billion and the letter of credit facility to $1 billion.
Rowan CEO Charley Daitch said the developer has already contracted more than 1.2 gigawatts of capacity with technology companies. With the latest deals, Rowan said it has arranged more than $8 billion in financing from more than 40 lenders over the past 18 months.
The corporate facilities follow a series of project financings, including $2.9 billion for the 300-megawatt Temple campus in Texas, the largest financing in Rowan’s history. Mizuho, MUFG and Sumitomo Mitsui also helped lead that transaction.
Rowan secured $550 million in construction financing for its 300-megawatt Cinco campus in Medina County, Texas, and $925 million for Bauxite Phase III in Frederick County, Maryland. The three projects account for about $4.4 billion in financing under Rowan’s Green Finance Framework.
Rowan is backed by Quinbrook, a leading investor in the energy and digital transitions, and Blackstone.
Simpson Thacher & Bartlett LLP served as legal counsel to Rowan for the revolver and letter of credit facility, while the lenders were represented by Dechert LLP. For the term loan, Rowan was represented by Kirkland & Ellis LLP and Milbank LLP advised the lender group.
Pictured: Bauxite Phase III in Frederick County, Maryland