Stack Infrastructure, a build-to-suite “hyperscale” data center operator for major tech firms is returning to the securitization market to refinance debt as well as complete funding for incomplete operational sites.
Through the Stack Infrastructure Issuer LLC (Series 2021-1), the Denver-based firm will issue $400 million in Class A-2 notes with preliminary A- ratings from S&P Global Ratings.
The notes will be secured by the first-lien mortgage and deeds of trust interest in 10 data centers owned and managed by Stack Infrastructure.
The notes’ proceeds will be used to repay the outstanding balance of the Series 2019-1 Class A-1 notes issued from the trust, and for general corporate purposes that will include “further development of the data centers” – namely the continuing construction and expansion of campuses in Silicon Valley and the Chicago area, according to S&P.
Stack also issued
The notes are paid through receivables from leases on the data centers with clients which are generally investment-grade rated (70.9% of the collateral pool lease balance) and also reliant on the data centers for their core business mission.
Estimated debt service coverage is 2.19x, according to the ratings agency.
Guggenheim Securities is the sole structuring advisor on the deal, and serves as joint active bookrunning manager.
