From: MIP Investor Relations <[email protected]>
Sent: September 14, 2020 7:42 PM
To: MIP Investor Relations <[email protected]>
Cc: Karl Kuchel (MIRA) <[email protected]>; Jenny Chan (MAM MIRA NY) <[email protected]>
Subject: MIP IV – Aligned Energy Completes Refinancing
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| MIP IV |
| Aligned Energy Completes
$1bn Refinancing |
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| Dear Limited Partner,
On September 4, 2020, Aligned Energy (Aligned), MIP IV’s wholesale data center platform (co-owned 54%/46% with MIP V), successfully closed a $1.0 billion corporate-level secured bank debt facility. Approximately $650 million was drawn at financial close to refinance the company’s existing $575 million facility and fund near-term capital expenditure needs. The remaining $350 million will be drawn over time to support further build-out and expansion of existing sites as the company executes new customer leases across the portfolio.
The financing is priced at LIBOR + 325bps, which is a 25bps lower margin than the previous debt facility, with a 75bps LIBOR floor and commitment fee of up to 50bps on undrawn commitments. Initial tenor is three years, with two additional one-year extension options. The new facility is the largest bank debt financing for a sponsor-backed U.S. data center platform and is also the first known data center financing to include potential interest rate margin benefits (up to 5bps) based on meeting sustainability-linked KPIs, such as green energy usage and safety performance.
Despite a fairly unsettled financing and political environment, Aligned’s refinancing was supported by a diverse bank group of thirteen lenders. The upsize was made possible by Aligned’s strong leasing momentum over the last six months, having won a number of major customer contracts in Ashburn, Phoenix and Salt Lake City. That momentum enabled Aligned to bring the Ashburn facility into the collateral pool, thereby growing the borrowing base for the debt facility.
Since being established, Aligned has become one of the fastest-growing wholesale data center platforms in the U.S. Aligned continues to have a strong growth outlook and is expected to require additional capital investment over the next few years.
Should you have questions regarding these events or would like to discuss
MIP IV’s businesses, strategy or performance, please contact us at MIP.
Sincerely,
Macquarie Infrastructure Partners IV |
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| © Macquarie Infrastructure Partners Inc.
NOTICE: None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.
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