CyrusOne Secures $9.7 Bn in New Debt Capital for Data Center Expansion

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DateJul 9, 2024

Global data center owner, developer, and operator CyrusOne has successfully closed a substantial $7.9 billion Warehouse Credit Facility. This significant transaction is set to primarily finance both existing and forthcoming development projects within the United States.

This latest financial maneuver follows the completion of a $1.8 billion Revolving Credit Facility in May. With these combined efforts, CyrusOne has effectively raised approximately $9.7 billion in additional debt capital, showcasing strong support from a diverse array of lenders. The global Revolving Credit Facility is intended to support working capital and general corporate purposes, reinforcing the company’s robust financial foundation. Both credit facilities are sustainability-linked, adhering to principles that align with CyrusOnes commitment to sustainable development.

Eric Schwartz, Chief Executive Officer at CyrusOne, expressed optimism regarding the successful financing. The closing of this significant financing, paired with our optimistic business outlook, bolsters our capability to deliver premier digital infrastructure projects. These projects are crucial to meet our customers’ expanding needs and position CyrusOne for future investment opportunities, said Mr. Schwartz. He also conveyed gratitude to their financial partners for their unwavering support.

Fran Federman, CyrusOne’s Chief Investment Officer, highlighted the benefits of the new financial arrangements. The completion of both the Warehouse and Revolving Credit Facilities provides CyrusOne with attractively priced capital and increased liquidity. The strong interest from the lender community underscores the robustness of our business and the markets confidence in our ongoing momentum, said Mr. Federman.

AI Capabilities, Sustainability

In addition to its financial strategies, CyrusOne has made significant strides over the past year to meet the escalating demand for AI capabilities while advancing its sustainability objectives. In 2023, the company introduced Intelliscale, a data center solution tailored specifically for AI workloads, addressing the burgeoning requirements of AI applications and services. This move is part of CyrusOne’s broader strategy to enhance its service offerings in response to market needs.

Furthermore, CyrusOne remains committed to its environmental goals, having accelerated its net-zero carbon pledge by a decade to achieve this milestone by 2030. This initiative is a testament to the company’s dedication to sustainability and responsible growth.

The successful arrangement of the Warehouse Credit Facility was led by Morgan Stanley, TD Securities, and KKR Capital Markets. Wells Fargo played a pivotal role as the lead arranger for the Revolving Credit Facility. Additionally, Global Infrastructure Partners collaborated closely with CyrusOne throughout these transactions, contributing to the seamless execution of the financing strategy.

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