NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA assigns preliminary ratings to three classes of notes from TierPoint Issuer, LLC and TierPoint Co-Issuer, LLC Series 2023-1 and Series 2023-2, a data center securitization that is primarily collateralized by fee ownership and leasehold interests in commercial real estate properties and the related customer contracts for data centers across the US.
This transaction represents the first securitization by TierPoint, LLC (TierPoint or the Manager) and is secured by 31 data centers generating approximately $397.2 million of Total Annualized Monthly Recurring Revenue (Annualized Revenue or AMRR) and approximately $198.3 million of Annualized Adjusted Net Operating Income (AANOI) as of November 2022 (the Statistical Disclosure Date). This includes fee simple ownership interests in nine multi-customer enterprise data centers (37.1% of AANOI) located in eight markets and leasehold interests in 22 multi-customer enterprise data centers (62.9% of AANOI) located in 15 markets. The 31 data centers are comprised of approximately 584,376 square feet (sf) of data center space and can provide approximately 63.5 megawatts (MW) of critical load power to customers.
The data center colocation customers use the space for power, space, and cooling of their data center equipment, cloud services as well as managed solutions, business continuity and other professional services. As of the Statistical Disclosure Date, a total of over 2,900 unique customers are subject to approximately 8,900 contracts, with the top 20 customers comprising approximately 20.7% of Annualized Revenue.
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- US CMBS Property Evaluation Methodology
- US CMBS Single Borrower & Large Loan Rating Methodology
- General Global Rating Methodology for Asset‑Backed Securities
- Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
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Anna Roginkin, Director (Lead Analyst)
Fred Perreten, Managing Director
Eric Neglia, Senior Managing Director (Rating Committee Chair)
Arielle Smelkinson, Senior Director