October 20,2025
In a significant capital markets move, Switch, a premier provider of AI, cloud and enterprise data centers, has announced the successful closing of its fourth asset-backed securities (ABS) offering, raising nearly $659 million. This transaction solidifies the company's position as the largest single issuer of data center ABS since 2024, bringing its total ABS issuance to approximately $3.5 billion. The newly issued Class A-2 Notes received top-tier ratings of AAA, AA (low), and A (low) from DBRS Morningstar, while the Class B Notes were rated BBB (low).
Proceeds from this issuance are earmarked to fund Switch's expansive growth strategy, which includes ongoing development at each of its five campuses tailored for Hyperscale, AI, and enterprise customers. This offering marks a pivotal shift as Switch's first securitization with proceeds dedicated entirely to new development, coming on the heels of the company's July 2025 announcement that it had retired all $6.5 billion of bank debt from its 2022 take-private.
The strength of this issuance is rooted in the scalability of Switch's enterprise ABS platform, which now encompasses 10 data centers across four geographically diverse campuses. This robust infrastructure serves nearly 500 customers, with over 70% of revenue generated from tenants rated investment grade. These strong credit characteristics enabled Switch to introduce the first AAA-rated tranche in non-hyperscale data center ABS, a sector milestone that reinforces the company's leadership in data center capital markets. Furthermore, all of Switch's ABS issuances qualify as secured green bonds, underscoring a deep commitment to sustainability and responsible growth.
"The success of this transaction, and the overall growth of our platform, clearly demonstrate that our formula of leading-edge technology combined with exascale campus deployments in Tier 1 markets continues to resonate with customers and investors alike," said Madonna Park, Chief Financial Officer of Switch. "As our deep pipeline of fully leased multi-tenant and Hyperscale assets continues to stabilize, we expect to remain an active issuer across the ABS and broader capital markets." She added, "With roughly $6 billion of stabilized asset financings completed to date, we have the scale and track record to continue to efficiently recycle capital while supporting the largest AI, cloud and enterprise customers, as they grow with Switch."
Concurrent with this financial achievement, Switch's momentum has been recognized industry-wide. The company was recently awarded "2025 Growth Story of the Year" by TMT Finance and has received additional accolades for its capital markets achievements from IJ Global, PFIA, and Proximo Infrastructure this year. For this landmark transaction, Wells Fargo Securities, LLC served as Co-Structuring Advisor and Lead Left Bookrunner, while RBC Capital Markets, LLC acted as Co-Structuring Advisor and Joint Active Bookrunning Manager. Morgan Stanley, TD Securities, and Truist served as Joint Active Bookrunning Managers. Kirkland & Ellis LLP advised Switch, with Latham & Watkins LLP representing the underwriters.
SOURCE PRNewswire
