Multiple streams of revenue associated with 33 data centers, including fee simple ownership interests and leasehold interests, will secure $500 million in securitized bonds from the TierPoint Issuer and TierPoint Co-Issuer.
The colocation data center asset-backed securities (ABS) deal will issue three tranches of notes: classes A2 and B, and A-2 from series 2025-1 and 2025-2, respectively, according to Kroll Bond Rating Agency.
Properties are in 19 markets, KBRA said, with 10 multi-customer enterprise data centers in eight markets that account for 29.5% of annualized monthly recurring revenue (AMRR). Twenty-three multi-customer enterprise data centers, which account for 70.5% of AMRR account for the other portion of the pool.
KBRA notes that the 33 data centers are composed of 638,788 sellable square feet of space and can provide about 95.7 megawatts of critical power load to customers.
Guggenheim Securities is the sole structuring advisor on the deal, according to KBRA.
All classes of notes in series 2025-1 have a legal final maturity date of April 2055, the rating agency said. KBRA assigns A- to the 2025-1 A2 notes; BBB- to the 2025-1, class B notes; and A- to the 2025-2, A2 notes.
The rating agency finds that the notes benefit from various levels of debt service coverage ratio (DSCR) triggers that help support repayment. The credit to the notes also get a boost from a senior note interest and expense reserve sub-account. That account will be funded at closing with about six months of interest from the class notes, and commitment fees for all the series, the rating agency said.
TierPoint Issuer also includes loan-to-value (LTV) tests, KBRA said. Should the total principal amount exceed 62.5% for class A notes, or 67.5% for the class B notes, the class of notes will amortize until the LTV ratio returns to where it is supposed to be, the rating agency said.
