• Senior secured facilities pay BBSY+ 250bps initially
• Roadshow starts on 19 October in Sydney

Blue Owl Capital-backed STACK Infrastructure Australia’s AUD 8.585bn (USD 5.97bn) five-year green loan mainly to fund its greenfield data centre development in Melbourne was launched into syndication on Tuesday, according to an invitation letter.

The senior secured deal, comprising a bullet term loan, a revolving letter of credit facility and a revolving credit GST facility, will primarily fund the development of the 4x216MW data centre campus with four buildings. The loans pay an initial margin of BBSY+ 2.50% p.a, said a source familiar with the matter.

Lenders providing unconditional commitments of AUD 225m or above by 6 November will receive an early bird fee of 10bps, according to the letter.

Construction of the core and shell of the data centre project has already commenced, and fit-out works are expected to start in 1Q27, the invite states. The project is fully leased for an initial 12-year period to a top-tier US hyperscaler, the invite states, without specifying the name. The contract has two extension options of five years and four years.

The loan-to-cost is about 85%, according to the source.

Key terms of the loan, according to the invite:
Original borrower: STACK Infrastructure Australia (1005 Boundary Road) Pty Ltd
Guarantors: STACK Infrastructure Australia (1005 Boundary Road) Pty Ltd in its personal capacity and as trustee of STACK Infrastructure Australia (1005 Boundary Road) Unit Trust; STACK Infrastructure Australia (1005 Boundary Road) Holdco Pty Ltd in its personal capacity and as trustee of STACK Infrastructure Australia (1005 Boundary Road) Hold Trust.
Facilities: A bullet term loan, a revolving letter of credit facility and a revolving credit GST facility.

The initial margin is 2.50%, stepping down to 2.25% upon practical completion of the project
Use of proceeds: Facility A is mainly to fund the construction of the shell and fit-out of the data-centre project. The LC facility is to support project obligations. The GST facility is to finance GST liabilities.
Titles and participation fees: Lenders who provide unconditional commitments of AUD 225m or above on or before 6 November will be entitled to an early bird fee of 10bps.

Mandated lead arrangers, underwriters and bookrunners: Société Générale Sydney branch, Deutsche Bank London branch; Deutsche Bank Sydney branch, Banco Bilbao Vizcaya Argentaria Hong Kong branch, Citibank Singapore Branch, Citibank Sydney Branch, Citigroup Global Markets Asia, Clifford Capital Credit Solutions, DBS Bank, Natixis Singapore branch, Oversea-Chinese Banking Corp, HSBC, MUFG Bank, Banco Santander Hong Kong branch, Sumitomo Mitsui Banking Corp, Westpac Banking Corp, The Korea Development Bank, Commonwealth Bank of Australia and United Overseas Bank Sydney branch.
Status:

• Launched into general syndication on 13 October
• Roadshow in Sydney on 19 October
• 1-1 meetings in Sydney on 20 October
• Lender presentation & site visit in Melbourne on 21 October
• Roadshow in Singapore on 22 October
• 1-1 meetings in Singapore on 23 October
• Roadshow in Japan on 26 October
• 1-1 meetings in Japan on 27 October
• 1-1 meetings in Taipei on 28 October
• Commitments due from early birds on 6 November
• Commitments due from incoming lenders on 20 November
• Allocation and execution of syndication agreement on 27 November

STACK Infrastructure operates more than 130 operational and under-construction data centres across 32 markets and four continents.

In Asia Pacific, it operates in Australia, Japan and Malaysia with more than 4GW of total and potential capacity, about 84% of which is in Australia, according to the invitation letter.

A consortium comprising BlackRock-backed Artificial Intelligence Infrastructure Partnership and IFM Investors are in exclusive talks for a potential acquisition of Stack Infrastructure’s Asia Pacific data centres, Bloomberg reported on 24 September. The assets could be valued at USD 20bn-USD 25bn, it stated.

In January 2025, New York-listed asset manager Blue Owl acquired IPI Partners, the previous manager of the funds that own STACK Infrastructure APAC. The funds are now managed by Blue Owl Digital Infrastructure under Blue Owl’s Real Assets platform, the invitation letter states.

In February this year, Stack Infrastructure Australia (411 Palmers Road) Pty Ltd obtained a AUD 2.955bn five-year loan to support the development of a 252MW data centre in Melbourne, Debtwire data shows. The deal pays BBSY+ 210bps during construction, stepping down to 190bps upon completion, said the source.

The loan comprises a AUD 2.52bn term loan as well as AUD 35m and AUD 400m RCF tranches. DBS Bank, MUFG Bank, Natixis, Oversea Chinese Banking Corp, Societe Generale, Sumitomo Mitsui Banking Corp, Korea Development Bank, Westpac and Woori Bank are MLABUs.