Switch announced the closing of an asset-backed securities offering, raising approximately $768 million through its Series 2026-1 issuance. The Class A-2 Notes are rated AAA (sf), AA (low) and A (low) by DBRS Morningstar, with an anticipated repayment date of March 2031. Net proceeds from the offering will be used to repay existing debt and for general corporate purposes.
The transaction adds a Reno, Nevada-based data center of approximately 1.4 million square feet to the securitized portfolio. The facility contributes more than 52 MW of capacity and expands the trust into a fifth geographic market, further enhancing its scale and diversification. Following the issuance, Switch's securitized pool includes 11 data centers across five U.S. markets, serving more than 550 customers.
Approximately 84% of trust revenue is derived from customers with investment-grade credit profiles, underscoring the platform's credit quality and stability. This transaction represents Switch's fifth ABS issuance since 2024, bringing total ABS issuance during that period to approximately $4.2 billion. All of Switch's ABS issuances qualify as secured green bonds, highlighting the company's commitment to sustainability and responsible growth.
Barclays and Citigroup served as co-structuring advisors and joint active bookrunning managers. BMO Capital Markets and Truist also participated as joint active bookrunning managers. Kirkland & Ellis LLP advised Switch, and Latham & Watkins LLP represented the underwriters.
