Cordiant Digital Infrastructure Ltd (LSE:CORD) said a Belgian business in which it has a stake has secured a fresh €120 million investent package from a group of lenders.
Datacenter United, which is 37.4% Cordiant-owned, has agreed a five-year deal with DNB, Belfius Bank and NIBC Bank that will run until September 2030.
The facilities include a €50 million term loan, which will replace existing borrowings and repay shareholder loans, a further €50 million to fund acquisitions and expansion, and a €20 million revolving credit line for day-to-day financing needs.
The term loan has what is known as a “bullet repayment” structure, meaning the full amount is repaid at the end of the loan in one lump sum rather than through instalments.
The interest rate is set at 2.25% above Euribor, the European interbank benchmark, which the company described as competitive given that demand from banks outstripped the deal size.
Cordiant will receive €15 million in cash from the repayment of shareholder loans, which it plans to use to reduce borrowings at group level.
The group said its overall debt ratios remain unchanged, with no borrowings due to mature before 2029.
Steven Marshall, executive chairman of Cordiant Digital Infrastructure Management, said: “We are delighted with the strong support shown by both international and local lenders in this refinancing, which attracted significant interest from the banking market.
"The new facilities provide Datacenter United with a flexible, long-term capital structure to support its ambitious growth and acquisition plans.”