KBRA Assigns Ratings to TierPoint Issuer LLC, Series 2025-1 and Series 2025-2 and Takes Other Rating Actions
8 Apr 2025 | New York
KBRA assigns ratings to three classes of notes (the Series 2025-1/2 Notes) from TierPoint Issuer LLC and TierPoint Co-Issuer LLC, Series 2025-1 and Series 2025-2 (together, the Co-Issuers), a colocation data center ABS transaction. The Series 2025-1 Notes and Series 2025-2 Notes represents the third ABS issuance issued by the Co-Issuers. KBRA’s rating analysis incorporates all prior debt issuance of the Co-Issuers. KBRA also affirms the ratings of the Series 2023-1 Notes, the Series 2023-2 Notes, and the Series 2024-1 Notes in conjunction with the issuance of the Series 2025-1/2 Notes (together, the Notes).
The Notes are secured by 33 data centers generating approximately $471.5 million of Total Annualized Monthly Recurring Revenue (AMRR) and approximately $237.4 million of Annualized Adjusted Net Operating Income (AANOI) as of November 30, 2024 (the Statistical Disclosure Date). This includes the fee simple ownership interests in 10 multi-customer enterprise data centers (29.5% of AMRR or 35.0% of AANOI) located in eight markets and leasehold interests in 23 multi customer enterprise data centers (70.5% of AMRR or 65.0% of AANOI) located in 16 markets. The 33 data centers are comprised of approximately 638,788 sellable square feet (sf) of data center space and can provide approximately 95.7 megawatts (MW) of critical load power to customers.
The data center colocation customers use the data center space for power, space, and cooling of their data center equipment, cloud services, business continuity and other professional services. As of the Statistical Disclosure Date, the portfolio is comprised of 2,652 unique customers, pursuant to separate customer contracts with a weighted average remaining contract term of 1.9 years. The largest customer accounts for 5.2% of AMRR while the top 20 customers account for approximately 27.0% of AMRR. The portfolio of customers operate in seven unique industries. The top three industries include diversified mix (27.0% of AMRR), technology (22.8%), and finance (15.9%).
To access ratings and relevant documents, click here.
Click here to view the report.