CyrusOne: US$7bn Warehouse Credit Facility for AI Expansion

Eric Schwartz, Chief Executive Officer at CyrusOne
CyrusOne has secured US$7.9bn Warehouse Credit Facility, which will enhance its financial flexibility for its growing AI and sustainability initiatives

CyrusOne has announced the closing of a US$7.9bn Warehouse Credit Facility. The executed transaction is incremental to the US$1.8bn Revolving Credit Facility financing which finished in May. In total, this leads to US$9.7bn of additional debt capital, raised with broad-based support from lenders.

CyrusOne is a leading global data centre owner, developer and operator, which is particularly skilled at delivering sleek digital infrastructure solutions.

CyrusOne’s AI expansion

CyrusOne is a leading global data centre developer and operator, with a portfolio of over 50 data centres in key markets around the world. The company is committed to providing its customers with the critical infrastructure they need to support their digital transformation initiatives. 

The Warehouse Credit Facility will fund existing development projects across the US and be available to support future goals. Morgan Stanley, TD Securities and KKR Capital Markets served as lead arrangers for the Warehouse Credit Facility. 

Meanwhile, the global Revolving Credit Facility will be used for working capital and for general corporate purposes. Wells Fargo served as lead arranger for this. 

Global Infrastructure Partners also worked closely with the company in connection with these transactions.

These facilities are sustainability-driven and will align with sustainability-linked loan principles. The pricing on the debt facilities will also be adjusted, based on CyrusOne’s achieving target reductions in Greenhouse Gas Emissions.

Over the past year, CyrusOne has driven itself to meet customer demand for AI, in addition to strengthening the company’s sustainability goals. In 2023, CyrusOne launched Intelliscale, an AI workload-specific data centre solution, developed to meet the rapidly accelerating needs of AI applications and services. 

Eric Schwartz, Chief Executive Officer at CyrusOne said that the company was extremely grateful to its financial partners for their continued support of CyrusOne.

“The successful closing of this significant financing, combined with our strong business outlook for growth, expands our ability to deliver world-class digital infrastructure projects that meet the growing needs of our customers while positioning CyrusOne for future investment and development opportunities,” Eric said. 

Fran Federman, CyrusOne’s Chief Investment Officer, echoed that the company was pleased to announce the completion of the Warehouse Credit Facility and the Revolving Credit Facility, as both will provide CyrusOne with attractively priced capital and enhanced liquidity.

“Our ability to raise these debt facilities and the tremendous interest that we have received from the lender community are a testament to the strength of our business and the market’s confidence in our ability to continue to build on the significant momentum we have achieved thus far,” said Fran. 

CyrusOne’s climate-neutral data centre goals

DataCentre Magazine caught up with Matt Pullen, Executive Vice President and Managing Director for Europe at CyrusOne. In this exclusive interview about the company’s continued approach to sustainability and its future working towards climate-neutral goals, Matt discussed his pride in being appointed as the European Data Center Association (EUDCA) representative to the Board of Directors for the Climate Neutral Data Center Pact (CNDCP), a Self Regulatory Initiative launched in Europe. 

“As a founding signatory, CyrusOne took an active role working with the EUDCA to bring the CNDCP to life,” Matt said. “Sustainability is something that has been talked about over and over, but being able to take direct action to protect the environment and build an agreed upon Pact to keep the industry accountable is deeply important to us.”

However, Matt recognised that this isn’t easy and it takes time, but CyrusOne are doing everything they can to honour and advance the mission of the Pact.

“So that we can keep our teams, customers and regulators fully in the loop with the progress we are making towards sustainability, every year we release a report which breaks it down by each of the ‘Big Four’ categories: climate, water, biodiversity and circularity.”

Read the full interview here

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