Sabey Data Centers Successfully Issues $800M in Securitized Notes

The issue receives an investment grade rating of A+ by Standard & Poor’s


Sabey Data Centers, one of the largest privately-owned multi-tenant data center owner/developer/operators in the United States, announced today that it has completed a major financing by successfully completing its inaugural issuance of $800 million in securitized notes.

Structured by Guggenheim Securities, LLC, acting as sole structuring advisor, sole active bookrunning manager, and sole placement agent, using an asset-backed securitization (ABS) platform, the notes are rated investment grade at A+ by Standard & Poor’s, a data center industry first. The facility, only the third-ever securitization master trust platform for the industry, will allow Sabey to access debt capital markets more efficiently.

Robert Rockwood, President of Sabey Data Centers, said, “The issuance is significant for the Company. It provides low-cost, fixed-rate debt and a long-term capital structure to support future growth. In essence, this facility will give us the capacity to double our size on existing campuses that we control. In addition, we continue to unlock our potential to offer low-cost, renewable energy to our customers.”

Patty Sewell, Chief Financial Officer, Sabey Corporation, said, “The notes will refinance the Company’s existing credit facility with TD Securities, who was also a passive bookrunner on the ABS issuance, and will provide immediately available liquidity to fund continued expansion. I applaud Guggenheim Securities for its extraordinarily thoughtful execution of this transaction, the first 144A non-traditional new issue ABS deal since the markets effectively closed on March 11th due to the COVID-19 pandemic.”

In addition to achieving an A+ rating, the issue is the first master trust platform in the Data Center ABS sector to offer a series longer than five years. “Both are a testament to the strength of Sabey’s assets, team and story,” said Ms. Sewell.

The notes have not been, and will not be registered, under the Securities Act of 1933, as amended, and may not be offered or sold absent such registration, or an applicable exemption from the registration requirements thereunder. This press release is neither an offer to sell, nor a solicitation to buy any notes nor shall there be any sale of the notes in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Sabey Data Centers

With a portfolio of more than three million square feet of mission critical space, Sabey Data Centers is one of the largest privately-owned multi-tenant data center owner/developer/operators in the United States. Sabey specializes in scalable, custom-built solutions including data center ready shell space and fully turnkey data centers managed by Sabey’s award-winning critical environment staff. Consistently recognized for low cost hydroelectric power, operational excellence through its world-class data centers and sustained uptime, Sabey is proud to provide data center services to many of the world’s top financial, technology and healthcare companies.

Will Your Data Center Support Growth?Scaling a data center is one of the most challenging tasks an organization can face.

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