Blackstone-backed data centre operator QTS Realty Trust is seeking to raise approximately $800m through a private debt placement, according to Private Equity Wire, citing a report by Bloomberg. Private Equity Wire reports that the capital raise is being pursued as demand for artificial intelligence infrastructure drives further financing activity across private credit markets.
Proposed issuer, timing, and arrangers
The proposed financing will reportedly be issued through QTS Thunder Managing Issuer LLC, which Private Equity Wire describes as a special-purpose entity, according to Private Equity Wire. Private Equity Wire reports that pricing could potentially take place this week.
Mizuho, Natixis, Société Générale and Wells Fargo are arranging the transaction, Private Equity Wire reports. The financing could carry maturities ranging from seven to 15 years, according to Private Equity Wire.
Use of proceeds and prior private placements
Part of the proceeds will be used to refinance existing debt, Bloomberg reported, according to Private Equity Wire. The financing follows previous capital raises by QTS through private placements, according to Private Equity Wire.
Private Equity Wire reports that these private placements typically attract institutional investors including insurers and asset managers. The latest private debt financing is described by Private Equity Wire as reflecting the growing use of private debt markets to fund data centre development and associated AI infrastructure.
Blackstone ownership and positioning
Blackstone acquired QTS for approximately $10bn in 2021, according to Private Equity Wire. Private Equity Wire reports that Blackstone has subsequently positioned QTS as a major part of its data centre investment strategy.
Widely-known context: Data centres and related AI infrastructure have been an active theme across private markets as computing demand has increased. Widely-known context: Private placements are commonly used in credit markets to raise capital from institutional investors outside public bond markets.
