Private credit funds are currently in discussions to provide at least AUD1.5bn ($978m) in junior debt to support a potential buyout of Australian data centre operator AirTrunk, according to a report by Bloomberg citing unnamed sources familiar with the negotiations.
These loans from direct lenders would complement an existing AUD7bn financing offer from banks, the sources said.
There are at least two contenders for AirTrunk, with its owners seeking around AUD20bn for the sale. Blackstone has shown interest, while a consortium including IFM Investors, Digital Bridge Group, Global Infrastructure Partners and Silver Lake Management is also in the running. This buyout would be one of the largest digital infrastructure deals in the Asia Pacific region this year.
AirTrunk operates data centres across Australia, Singapore, Hong Kong, Japan and Malaysia, according to its website.
A group led by Macquarie Group acquired control of AirTrunk four years ago in a deal valued at about AUD3bn.
