QTS Thunder Managing Issuer, LLC Up to $3.6 Billion of Senior Secured Debt Preliminary Rating Report
Executive Summary
KBRA assigns its preliminary ratings to QTS Thunder Managing Issuer, LLC’s proposed senior secured debt issuance of up to $3.6 billion which may be issued in multiple transactions. The Outlook is Stable.
QTS and Blackstone (the sponsors) are adding five newly constructed data centers to an existing master indenture structure (MIS), creating a diversified portfolio of 12 fully contracted and stabilized data centers totaling 493.5MW across Richmond, Virginia; Phoenix, Arizona; Dallas, Texas; Columbus, Ohio; and Manassas, Virginia. The portfolio is fully leased to investment-grade hyperscale tenants under 10 triple-net leases and two double-net leases, with initial lease terms ranging from 15 to 20 years and renewal terms ranging from 10 to 15.3 years. The incremental financing will rank pari passu with approximately $4.3 billion of existing MIS indebtedness, bringing total senior secured indebtedness under the MIS to up to approximately $7.9 billion.
The contemplated…
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