18 December 2013 – Property Week
Data centre owner and operator Global Switch 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.
The first bond transaction was a £350m bond which matures on 13 December 2022, paying a coupon of 4.375%. Joint bookrunners were Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs and HSBC.
The second was an Australian $100m bond which matures on 23 December 2020, paying a coupon of 6.250%. Joint bookrunners were Commonwealth Bank of Australia, Deutsche Bank and HSBC.
Proceeds of the transactions will be used to pay an exceptional dividend of up to £600m to Global Switch’s parent company, Aldersgate Investments.
John Corcoran, executive chairman of 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.”