Switch completes two securitized financing transactions totaling $3.5 billion

On March 25, data center provider Switch announced the successful completion of two securitized financing transactions totaling 3.5 billion: a $2.4 billion Single Asset Single Borrower (SASB) CMBS loan and a $1.1 billion Asset Backed Security (ABS) issuance.

The combined proceeds will be used to refinance most of Switch’s outstanding acquisition financing from a 2022 take-private transaction led by DigitalBridge and IFM Investors. 
Switch president Thomas Morton, reported that the two transactions make Switch the largest issuer of securitized data center paper during the past year.

“These [transactions] comprised $3.5 billion of new securitized debt, bringing our total issuance over the past 12 months to more than $5.2 billion,” said Morton in a press release.

The company reports that both the CMBS and the ABS transactions are the largest green data center transactions of their kind ever completed. The former includes Switch’s Las Vegas 7, Las Vegas 9, and Reno 2 data centers, and the latter includes its Las Vegas 10 and Las Vegas 11 data centers.

Switch CFO Madonna Park said the transactions highlight the company’s ability to access capital markets at scale.

“New and existing investors continue to show strong interest in our differentiated assets and business model, and we plan to remain a repeat issuer,” said Park in the same press release. 

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