(Bloomberg) — CyrusOne has secured a $7.9 billion line of credit score because it races to construct extra information facilities to satisfy the demand from the synthetic intelligence increase.
It’s the second sustainability-linked deal previously three months for the KKR & Firm and World Infrastructure Companions-backed firm after finishing a $1.8 billion revolving credit score financing in Might.
The info middle agency now has entry to as much as roughly $9.7 billion of debt capital, the corporate mentioned in a press release seen by Bloomberg on Monday.
The rise of AI has turbocharged demand for larger information facilities. Corporations have been pouring billions of {dollars} into constructing the infrastructure to retailer and course of info wanted to run AI functions.
CyrusOne’s new warehouse line is the newest in a string of structured debt offers utilized by information middle companies to fund the AI revolution. Others have turned to the asset-backed securities market.
Learn extra of the newest AI information middle information
The credit score facility will present CyrusOne with “attractively priced capital and enhanced liquidity,” Fran Federman, chief funding officer, mentioned within the assertion.
The info middle REIT, which designs, builds, and operates greater than 50 information facilities within the US and Europe, will use the credit score line primarily to fund growth tasks within the US, whereas the worldwide revolving credit score facility might be used for working capital and for common company functions, in accordance with the assertion.
The pricing on the debt amenities might be adjusted based mostly on the agency reaching its emission discount targets – CyrusOne is striving for local weather neutrality by 2030.
Morgan Stanley, TD Securities, and KKR Capital Markets had been the lead arrangers for the warehouse credit score facility whereas Wells Fargo served because the lead arranger for the revolving line.
