A portfolio of 21 Canadian data centers, which are completed and operating in the Montreal, Toronto and Vancouver markets, will serve as collateral for $1.5 billion in colocation asset-backed securities (ABS).
The Cologix Canadian Issuer, will issue four tranches of notes between series 2026-1 and 2026-2, in a master trust structure. All the tranches will have an anticipated repayment date of August 2031, and a legal final maturity of August 2056 according to Kroll Bond Rating Agency.
The class A notes, across the series 2026-1 and 2026-2, have a loan-to-value (LTV) ratio of 60.1%, KBRA said. Classes B and C have LTV ratios of 63.6% and 65.4%, respectively.
About 615 customers make up the properties' credit profiles, with a remaining customer contract term of about 1.5 years without renewals, and 2.3 years including renewals, according to KBRA. Cloud, carrier and enterprise customers represent the top three industries, accounting for 46.8%, 22.1% and 16.9% of the pool's total annualized revenue (AMMR).
RBC Capital Markets is the lead structuring advisor, according to KBRA.
The deal's structure includes debt service coverage ratio (DSCR) triggers. If the three-month average class A DSCR is less than 1.90x, then 100% of excess cash is deposited in the cash trap reserve until the three-month average class A DSCR exceeds 1.90x for two consecutive months.
There are also LTV tests. If the total principal amount of all the notes series cause the respective series of notes' LTV ratio to exceed 65.0%, 70.0%, or 75.0% for class A, B or C notes, respectively, that class of notes will amortize until the LTV ratio is back in compliance, KBRA said.
The centers have an appraised value of $2.1 billion, and annualized revenue of $234.2 million, the rating agency said.
KBRA assigns ratings of A- on the two class A notes; BBB- and BB- on classes B and C, respectively.
