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Switch Closes $4.25B Sustainability-Linked Facility, Enhances Credit Resources

Author

Slice of Real Estate Team
September 16, 2024

Key Highlights:

  • Switch secures a $4.25B sustainability-linked Borrowing Base Facility (BBF).

  • The Revolving Credit Facility (RCF) is upsized to $770M.

  • Funds will support new projects totaling $5B across four campuses.

  • BBF focuses on sustainable growth, aligning with sustainability-linked loan principles.

  • J.P. Morgan, TD Securities, and ING Capital play key roles in the transaction.

Source: PR Newswire

Notable Quotes:

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"The series of financings we have completed this year ideally position us for growth opportunities at the forefront of cloud, AI and enterprise, while affirming our commitment to sustainability."

Thomas Morton, President at Switch
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"Having access to multiple sources of capital will be important to support both our stabilized portfolio of assets as well as the continued development of our exascale campuses.

Madonna Park, Chief Financial Officer at Switch
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"This was a very successful syndication, with over 25 banks participating across both capital raises."

Jesse Burros, Chief Investment Officer at Switch

Our Take:

Switch’s strategic expansion of its borrowing base and revolving credit facilities signals its strong position in the data center industry, particularly as a leader in AI and cloud infrastructure. By embedding sustainability into its financing framework, the company not only emphasizes responsible growth but also aligns with the increasing market demand for environmentally conscious business practices. With key financial institutions backing these significant transactions, Switch is well-positioned to expand its offerings, particularly in hyperscale and AI-driven solutions, ensuring long-term competitive advantage in a rapidly evolving market.