DigitalBridge: Announces Closing of $500 Million of Securitized Notes

DigitalBridge Group, Inc. (NYSE: DBRG) yesterday announced the closing of two securitized financing note issuances totaling $500 million. Two of its subsidiaries, DigitalBridge Issuer, LLC and DigitalBridge Co-Issuer, LLC, closed the previously announced offering of $300 million aggregate principal amount of Series 2021-1 3.933 percent Secured Fund Fee Revenue Notes, Class A-2 (the “Class A-2 Notes”). Additionally, the Co-Issuers issued Series 2021-1 Secured Fund Fee Revenue Variable Funding Notes, Class A-1, which will allow the Co-Issuers to borrow up to $200 million on a revolving basis.

The closing of the Series 2021-1 notes will, according to the company:

• Refinances the company’s corporate credit facility, taking the effective maturity of its revolving credit from 2022 out to 2026.
• Lowers the cost of capital 
• Creates greater flexibility around capital allocation and corporate liability management, including its ability to retire higher cost debt or securities and eventually pay regular dividends on its common stock.

“We achieved another target we set out just over a year ago, establishing an investment-grade rating for our credit and transitioning our collateral to a digital asset base. In accomplishing this goal, DigitalBridge has brought its track record of pioneering digital infrastructure financings up to the corporate level, lowering our cost of capital and creating greater flexibility to invest in our business and manage our corporate liabilities,” said Marc Ganzi, President and CEO of DigitalBridge.

The company estimates that the net proceeds from the Series 2021-1 Notes will be approximately $490.6 million after the payment of certain offering expenses and accounting for the full availability of the VFN Notes and the interest reserve deposit. The uses of proceeds are intended to include, but are not limited to, the acquisition of digital infrastructure investments, the funding of commitments to managed funds, the redemption or repayment of other corporate securities and/or general corporate purposes.