Milbank LLP advised Tract Capital, a leading alternative asset manager focused on building companies that enable rapid scaling of digital infrastructure, and its portfolio company Fleet Data Centers, a developer and operator of mega-scale, single-user data center campuses, in connection with the closing of an upsized $4.6 billion offering of secured notes by its wholly owned subsidiary. The offering was completed through a private placement to qualified institutional buyers pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act.
The proceeds from the notes will be used to finance a portion of the development and construction of a 230 MW utility capacity (200 MW critical IT capacity) turnkey hyperscale data center and electrical substation on a 517-acre site in Storey County, Nevada. The facility is fully leased under a long-term triple-net lease to an investment grade-rated hyperscale tenant.
This is the second financing on which Milbank has advised Tract Capital this year, following the upsized $3.8 billion high-yield notes offering in February to finance the development and construction of another turnkey data center in Nevada. The two offerings were among the largest digital infrastructure high yield note offerings completed to date, achieving highly competitive pricing 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 Corporate Finance and Securities partner and practice group leader Jonathon Jackson. “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.”
The Milbank team was led by Mr. Jackson and included Real Estate partner Alex Meirowitz, Global Project, Energy and Infrastructure Finance partners and co-chairs of Milbank’s Digital Infrastructure Practice Group Dan Bartfeld and Jaime Ramirez and Corporate Finance and Securities partner Adam Brenneman. The team also included Corporate Finance and Securities associates Moses Farzan Nekou, Isobel Smith, Nishkarsh Jakhar and Justin Song, along with Global Project, Energy and Infrastructure Finance associate James Lim.
Milbank’s Digital Infrastructure Practice Group is the leading legal advisor driving digital infrastructure transactions across the entire value chain — from GPU procurement to powered land, data centers, buy-side/sell-side and capital raises (debt/equity) throughout the capital stack. Milbank has had the lead legal role in over $500 billion of digital focused transactions, including several of the largest capital markets, project finance, M&A and real estate transactions to date.
