Blackstone is reportedly planning to refinance approximately AUD5.5bn ($3.6bn) in junior debt being raised for its acquisition of AirTrunk Pte, a deal that marks the firm’s largest investment to date in the Asia-Pacific region, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter, as indicating that Blackstone is aiming to replace the existing debt facility raised at the holding company level with new financing at AirTrunk’s operating company level. This restructuring is expected to support AirTrunk’s ongoing expansion in the Asia-Pacific, including the development of additional data centres.
A Blackstone representative declined to comment.
The current holding company loan is being finalised in collaboration with several major banks, including Citigroup, DBS Group Holdings, and Deutsche Bank AG, as reported by Bloomberg News in October. Traditional lenders have offered more favourable interest rates and terms compared to private credit firms, which were previously in talks to provide at least AUD1.5bn of junior debt.
In addition to the new financing, Blackstone has rolled over AUD7bn of AirTrunk’s existing debt, including a sustainability-linked loan of AUD4.6bn signed in 2023. In October, AirTrunk also secured a SGD530m ($398m) five-year facility, an add-on to the sustainability-linked loan, to support the development of a new data centre in Malaysia.
Blackstone, in partnership with the Canada Pension Plan Investment Board, agreed in September to acquire AirTrunk, valuing the data centre company at approximately AUD24bn.
