Blackstone Is Said to Seek A$5.5 Billion Loan for AirTrunk Bid

Aug 30, 2024 | News | 0 comments

Private equity firm Blackstone Inc. is in discussions with banks for a five-year loan of about A$5.5 billion ($3.7 billion) to back its bid for Australian data center operator AirTrunk, people familiar with the matter said. 

The financing, which is expected to be raised at the holding company level, would be comprised of a A$2 billion term loan and a A$3.5 billion revolving credit facility, according to the people, who asked not to be identified speaking about confidential negotiations.

Blackstone is competing with a separate consortium that includes IFM Investors Pty, DigitalBridge Group Inc., Global Infrastructure Partners and Silver Lake Management, Bloomberg News has reported. The sale by AirTrunk owners Macquarie Group Ltd. and PSP Investments will be one of Asia Pacific’s largest digital infrastructure deals in 2024 and rides on the growing demand for cloud services amid an artificial intelligence boom.

AirTrunk shareholders have been seeking around A$20 billion in the sale, people with knowledge of the matter have said. Blackstone’s latest financing plan comes in addition to a A$7 billion pre-arranged funding package to potential bidders that four banks have provided, and at least A$1.5 billion of junior debt that private credit funds are in talks to provide, Bloomberg News reported earlier.

Representatives for Blackstone and AirTrunk’s main shareholders declined to comment.

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AirTrunk operates data centers in Australia, Singapore, Hong Kong, Japan and Malaysia, according to its website. A group led by Macquarie’s infrastructure arm took control of the company in 2020 in a deal that valued it at about A$3 billion, Bloomberg News reported at the time. Prior to that, it was owned by investors including Goldman Sachs Group Inc.’s special situations division.

The Asian cloud-services market has been heating up, with KKR & Co. agreeing to acquire a 20% stake in Singapore Telecommunications Ltd.’s regional data center business last year. A year earlier, Blackstone launched its first wholly-owned platform related to the sector in Asia.

Source: BNN

 

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