Deal Announcement


DC Advisory advises DWS on the acquisition financing for The Datacenter Group

26 Jul 2019

Background:

  • The Datacenter Group (the Company) owns a portfolio of four datacenter sites across the Netherlands
  • The Company own sites in Amsterdam, Delft, Utrecht and Rotterdam, with a total potential sellable capacity power of c. 9.2MWs
  • The Company benefits from a loyal and diversified customer base with over 100 customers, a low churn rate of 1.2%, an average PUE of 1.15 and an average weighted contract length of c. 6.5 years

Process:

  • DC Advisory (DC) was engaged by repeat client, DWS, to provide debt advice on the acquisition
  • DC ran a comprehensive financing process, engaging various sources of liquidity
  • DC led or contributed to a number of detailed work streams, including financial modelling, business planning and due diligence, while also leading on debt structuring and full documentation negotiations in order to address a number of key objectives, such as:
    • Securing a Certain Funds financing to support the bid
    • Positioning the business as a strong ‘infra’ credit to secure optimal financing terms from infrastructure lenders
    • Ensuring the financing has the flexibility to deliver the business plan and support the future growth of the business

Outcome:

  • DC delivered a successful outcome which assisted the Company in meeting its key refinancing objectives, including:
    • Secured committed financing at attractive leverage multiples
    • Established a financing platform that supports growth through a revolving capex facility and ability to bring in long-term debt providers alongside banks
    • Successfully positioned as an infrastructure lending opportunity which allowed us to deliver a competitive and attractive cost of debt with the flexibility to make distributions out over the next five years

Deal Team

Sergio Ronga

Managing Director
United Kingdom

Stephen Davies

Executive Director
United Kingdom