Digital 9’s Verne Global draws $100 million on green loan, fixes rate

By Marisa Wong

Los Angeles, June 12 – Digital 9 Infrastructure plc has drawn the full $100 million under its new green term loan debt facility, according to a Monday press release.

As announced on June 5, Digital 9 signed the new green term loan with an uncommitted $50 million accordion provision for Verne Global Iceland as borrower.

The facility is structured as a syndicated facility, fully underwritten by Natixis and with a fixed term of five years maturing in June 2028.

The interest rate payable in the first three years is SOFR plus 300 basis points, stepping up to SOFR plus 325 bps and SOFR plus 350 bps in years four and five, respectively.

According to Monday’s announcement, Verne Global put in place an interest rate swap for the first three years. The fixed rate for the tenor of the swap is 4.14%, and the all-in fixed rate including the applicable margin is 7.14%.

Verne Global had signed up to a green financing framework in connection with the facility, as previously reported.

Loan proceeds will be used to fund additional capacity under construction and development in 2023; refinance Verne Global’s existing bridge loan facility for $26 million; repay $50 million of the $62 million shareholder loan owed to Digital 9 by Verne Global, which will be used by Digital 9 to reduce the drawings of its revolving credit facility.

Natixis acted as arranger and green loan coordinator.

Taylor Wessing LLP acted as legal adviser to Verne Global.

Latham Watkins LLP acted as legal adviser to Natixis.

Borrower Verne Global Iceland is a data center company in Iceland that is wholly powered by renewable energy. U.K.-based Verne Global is owned by private equity firm Digital 9, which has headquarters in Saint Helier, Jersey.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.