Aligned Data Centers is raising $1.19 billion in asset-backed securities from real estate and tenant lease payments across four of its US data centers located in Ashburn, Virginia; Plano, Texas; and Northlake, Illinois.
According to a pre-sale report from S&P Global Ratings, three of the previous seven data centers in the data center firm’s series 2023-2 issuance will be removed from the trust at the series 2026-1 closing.
The transaction is a master trust, a special purpose vehicle used to bundle and securitize revolving debt across multiple series of bonds from a single, dynamic pool of assets.
Under this new issuance, the aggregate appraised value of the trust will decrease by $1.09bn to $3.16bn. Leased capacity will also decline by around 101MW.
However, the four remaining properties in the trust increased in value by $887 million, with leased capacity rising by around 22MW.
The transaction is the fifth issuance of the master trust, and will be used to repay all outstanding series of notes issued under the master trust. The current series will therefore not share identical collateral of the prior issuances, S&P said, reflecting the removal of the three data centers and reduction in overall collateral pool.
At close, expected July 27, the deal will benefit from a $36.9m reserve account, funded from series 2026-1-L/C. It also has a cash trap trigger and a class A amortization trigger based on the three-month average class A debt service coverage ratio (DSCR) levels of 1.35x and 1.20x.
Aligned has campuses in Chicago, Illinois; Dallas, Texas; Salt Lake City, Utah; Phoenix, Arizona; and Northern Virginia. The company has further sites in development in Maryland, Ohio, Illinois, and Virginia.
Aligned was sold by Macquarie Asset Management to a consortium of companies, including BlackRock-owned Global Infrastructure Partners last year for $40bn.