DataBank Secures $1.45 Billion in New Financing to Expand Data Center Operations

DataBank has closed two financing transactions worth a total of $1.45 billion, announced in a press release. The funding includes an $800 million revolving credit facility and a $650 million increase in financing for its Red Oak, Texas data center campus.

The $800 million revolving credit facility, which matures in 2031, will be used for corporate purposes such as working capital, capital expenditures, and liquidity support. The facility was arranged by a group of banks led by Citizens Bank, with Citibank, MUFG Bank, PNC Bank, TD Securities, Truist Securities, U.S. Bank, and Wells Fargo serving as joint arrangers.

The $650 million expansion adds to the existing $2 billion construction financing for the Red Oak campus, bringing the total to $2.65 billion. The new funds will support the construction of a fourth building, adding 60 megawatts of IT capacity. The financing includes $400 million in bank funding and $250 million in privately placed notes, marking DataBank's first private placement transaction.

MUFG acted as lead placement agent, with TD Securities and Barclays as joint placement agents, and Citibank, Citizens Bank, and National Bank of Canada as co-placement agents. Davis Polk & Wardwell LLP served as legal counsel for both transactions.