(Bloomberg) -- Blackstone Inc. is planning to refinance an around A$5.5 billion ($3.6 billion) of junior debt it is raising for the proposed buyout of AirTrunk Pte. Ltd., in what is the alternative asset manager’s largest-ever investment in Asia Pacific.
Blackstone plans to refinance the existing facility, which is being raised at the holding company, with new debt obtained at AirTrunk’s operating company level, the people said who asked not to be identified as the matter is private. The new funds will help back the data center operator’s future expansion in Asia Pacific as it looks to roll out new data centers, the people added.
A representative for Blackstone declined to comment.
Blackstone is finalizing the holding company loan with a large group of relationship banks, the people said. They include Citigroup Inc., DBS Group Holdings Ltd., and Deutsche Bank AG, Bloomberg News reported in October. Lenders had offered more competitive interest margins and terms than private credit providers, which were in discussions to provide at least A$1.5 billion of junior debt.
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The sponsor has also rolled over A$7 billion of AirTrunk’s current debt, including an A$4.6 billion-equivalent sustainability-linked loan signed in 2023. AirTrunk in October had signed a S$530 million ($398 million) five-year facility, which is an add-on to the SLL and will fund the development of a new data center in Malaysia.
Blackstone and Canada Pension Plan Investment Board agreed in September to acquire AirTrunk in a deal that valued the company at A$24 billion.
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