Global Switch, the leading owner and operator of large scale, multi-tenanted, carrier-neutral data centres in Europe and Asia-Pacific, has completed two further bond transactions in Sterling and Australian dollars, raising an equivalent total of £405m. Global Switch issued its inaugural €600m seven year bond, in 2011.
With the assignment of a BBB credit rating from Standard & Poor's in November to complement the existing investment grade ratings from Fitch and Moody's, the company announced its intention to conduct investor meetings in Europe and Australia. On the back of the positive response to these meetings, Global Switch was able to build order books supporting the successful pricing of two bonds at the tight end of initial price talk:
Proceeds of the transactions will be used to pay an exceptional dividend of up to £600m to Global Switch's parent company, Aldersgate Investments Limited.
John Corcoran, Executive Chairman, Global Switch, said "As a result of this process Global Switch now has a more appropriate long term capital structure. We have once again demonstrated our access to the deep liquidity of the international bond markets and were able to take advantage of a low interest rate environment to reduce our cost of capital. We were delighted to see such a positive investor reaction to the Global Switch credit in both the European and Australian markets and it was encouraging to see so many of our existing Euro bond investors participate in this latest fund raising".
Summary of terms and conditions of Sterling 350 million 2022 bond
|Issuer||Global Switch Holdings Limited|
|Issue ratings||BBB (Fitch) / BBB (Standard & Poor's)|
|Pricing date||December 4, 2013|
|Settlement date||December 13, 2013|
|Maturity date||December 13, 2022|
|Re-offer spread||G+180 basis points|
|Joint bookrunners||Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC|
Summary of terms and conditions of Australian dollar 100 million 2020 bond
|Issuer||Global Switch Property (Australia) Pty Limited|
|Issue ratings||BBB (Fitch) / BBB (Standard & Poor's)|
|Pricing date||December 12, 2013|
|Settlement date||December 23, 2013|
|Maturity date||December 23, 2020|
|Coupon||6.250 % semi-annual|
|Re-offer spread||asw+225 basis points|
|Joint bookrunners||Commonwealth Bank of Australia, Deutsche Bank, HSBC|
For more information about Global Switch, please visit www.globalswitch.com
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Founded in 1998, Global Switch Holdings Ltd (Global Switch) owns and operates large scale Tier III* data centres that are carrier neutral and multi-tenanted. The Company's focus is on highly resilient, central, low latency, network dense locations in prime city centre locations and internet hubs close to its customers on the edge of financial and business districts.
Global Switch operates 290,000 square metres (3,100,000 square feet) of data centres across seven locations in Europe and Asia Pacific.
The data centre industry is benefitting from attractive market dynamics, characterised by growth in internet usage, combined with the expansion of cloud computing, outsourcing and regulation which have led to significant growth in demand from financial institutions, corporations and governments.
Global Switch is part way through a significant global expansion plan which started with an extension of its Singapore data centre in 2010 and the building of a second data centre on its Paris campus in 2012. Having secured pre-commitments from a number of large multi-national companies, Global Switch is nearing completion of the construction of an expansion to its Amsterdam data centre and is also constructing the first stage of Sydney East, its second data centre in Sydney.
The next investments in the expansion programme will be new data centres in Hong Kong and Singapore, where Global Switch is planning a second facility.
At financial year-end 31 March 2013, Global Switch reported total revenues of £340 million and total assets of £4.38 billion. Since 2007 the company has been wholly owned by Aldersgate Investments Limited, which first acquired an interest in the company in 2004.
* A Tier III data centre is an industry standard classification for a data centre composed of redundant power and cooling distribution paths, providing a minimum of 99.982% availability.
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