G+T Lends $3 Billion to CDC to Assist With Debt Finance and Capital Market Issues

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CDC Data Centers (CDC) received $3 billion in debt finance and capital markets issuance assistance from Gilbert + Tobin (G+T).

The $308 million US private placement (USPP) issuance made possible by the agreement marks CDC’s debut on the capital markets. The purchase also entails expanding and refinancing the group’s debt facilities worth $2.7 billion.

CDC is renowned for its innovative and cutting-edge hosting approach, focusing on security, modularity, and connectivity. Its facilities are carefully designed to meet the needs of private organisations and government bodies in Australia and New Zealand. 

The acquisition is part of CDC’s plan to expand across Australia and New Zealand over the coming years, creating an industry-leading network of data centres.

The USPP generated long-term finance in 10- and 15-year tranches, with participation from 15 lenders who were involved in the bank debt deal “across multiple tranches ranging from two to seven years,” according to G+T.

Additionally, the USPP and new bank debt facilities increase operational flexibility and support CDC’s expansion, G+T claimed, which will also help with business plan implementation.

The acquisition “demonstrates that despite volatile capital markets, there is still a very strong appetite in the Australian and global debt markets for high-quality borrowers,” says G+T lead partner Stuart Cormack.

“With the demand for data centre space at an all-time high in Australia and New Zealand, and with no sign of this slowing down, CDC’s new debt structure makes it exceedingly well placed to capitalise on this growth,” he said.

While working on the deal, Cormack received assistance from business advisory partner David Josselsohn and other attorneys: Jack Naughton, James Sousa, and Catrina Chen.

Additionally, the funding will help establish new data centres that improve the development pipeline for CDC’s liquidity and financial security.

The G+T team has played an instrumental role in helping CDC to secure the funding it needs to continue its impressive growth trajectory. With demand for data centre services growing into the future, CDC is well placed to capitalise on this trend and expand its operations as required.

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