KBRA Assigns A+ Preliminary Rating to QTS Thunder Managing Issuer, LLC’s up to $3.6 Billion Senior Secured Debt
KBRA assigns its A+ preliminary rating to QTS Thunder Managing Issuer, LLC’s proposed $3.6 billion senior secured obligations. The Outlook is Stable.
QTS and Blackstone (the sponsors) are adding five newly constructed data centers to an existing master indenture structure (MIS), creating a diversified portfolio of 12 fully contracted and stabilized data centers totaling 493.5MW across Richmond, Virginia; Phoenix, Arizona; Dallas, Texas; Columbus, Ohio; and Manassas, Virginia. The portfolio is fully leased to investment-grade hyperscale tenants under 10 triple-net (NNN) leases and two double-net (NN) leases, with initial lease terms ranging from 15 to 20 years and renewal terms ranging from 10 to 15.3 years. The incremental financing will rank pari passu with approximately $4.3 billion of existing MIS indebtedness, bringing total senior secured indebtedness under the MIS to up to approximately $7.9 billion.
The contemplated incremental financing is for the addition of five assets totaling 214.5MW across Dallas, Phoenix, and Richmond. The new notes and any related senior secured loans will be issued or incurred under the MIS framework and will rank pari passu with the existing MIS indebtedness. The debt will be secured by the shared collateral and subject to intercreditor framework.
