Milbank LLP announced on May 19 that it advised Tract Capital and its portfolio company, Fleet Data Centers, in the closing of a $4.6 billion secured notes offering by Fleet’s wholly owned subsidiary. The transaction was completed through a private placement to qualified institutional buyers under Rule 144A and outside the United States under Regulation S of the Securities Act.
The funds from this offering will be used to support the development and construction of a hyperscale data center and electrical substation with a utility capacity of 230 megawatts (200 megawatts critical IT capacity) on a 517-acre site in Storey County, Nevada. The facility is fully leased to an investment grade-rated hyperscale tenant under a long-term triple-net lease.
This marks the second financing Milbank has handled for Tract Capital this year, following an earlier upsized transaction in February for another turnkey data center project in Nevada. Both offerings are among the largest high-yield note deals for digital infrastructure completed so far, with competitive pricing achieved across both transactions.
“The successful execution of this offering demonstrates the market’s continued appetite for compelling digital infrastructure opportunities and reinforces the ability of high-quality projects to attract meaningful investor interest even in a dynamic market environment,” said partner and practice group leader . “Despite broader market volatility, investors continue to differentiate in favor of well-structured financings backed by durable cash flows, attractive underlying fundamentals and thoughtfully designed capital structures.”
Milbank’s team was led by Mr. Jackson along with partners who co-chair various practice groups at Milbank, as well as associates specializing in corporate finance and global project finance. According to Milbank, its Practice Group has played lead legal roles in over $500 billion worth of digital-focused transactions including major capital markets, project finance, mergers and acquisitions, and real estate deals.
