DigitalBridge Completes DataBank Recapitalization
14 September 2023 - 3:00PM
Business Wire
Achieves Key 2023 Objective with Successful
Deconsolidation of DataBank
DigitalBridge Group, Inc. (NYSE: DBRG) (“DigitalBridge” or the
“Company”) today announced it has completed the previously
announced recapitalization of its portfolio company DataBank, a
leading nationwide edge data center platform. DigitalBridge
received $219 million in additional commitments in the final
closing, bringing total recapitalization commitments to $2.2
billion. The completion of the recapitalization will result in a
deconsolidation of DataBank from DigitalBridge’s consolidated
financial statements.
Marc Ganzi, CEO of DigitalBridge, said, “The successful
recapitalization and deconsolidation of DataBank – one of our key
2023 priorities – will further simplify our business profile and
result in administrative savings. We are also pleased that
DigitalBridge shareholders, alongside new investors Swiss Life
Asset Management, EDF Invest, and IMCO, will maintain significant
exposure to the next phase of growth and value creation at
DataBank, driven by strong AI-led demand for more data center power
and capacity.”
In connection with the completion of the recapitalization,
DigitalBridge will receive gross cash proceeds of $50 million,
bringing its total gross cash proceeds to $479 million inclusive of
prior closings, and its ownership in DataBank will be reduced to
9.87%. The pricing of the recapitalization, which has remained
constant throughout the recap process, implies a pre-transaction
net equity value of $905 million for DigitalBridge’s ownership,
reflecting a 2.0x multiple of invested capital (MOIC) since
DigitalBridge’s initial balance sheet investment in December 2019.
DigitalBridge plans to continue to hold its 9.87% stake in
DataBank, with a remaining fair market value of $434 million.
DataBank is the largest edge infrastructure operator in the
U.S., enabling the world’s largest enterprises, technology and
content providers to consistently deploy and manage their
mission-critical applications and data across a nationwide
platform. DataBank’s portfolio consists of more than 65 data
centers, 20 interconnection hubs in more than 27 markets, on-ramps
to an ecosystem of cloud providers, and a modular edge data center
platform.
About DigitalBridge
DigitalBridge (NYSE: DBRG) is a leading global alternative asset
manager dedicated to investing in digital infrastructure. With a
heritage of over 25 years investing in and operating businesses
across the digital ecosystem including cell towers, data centers,
fiber, small cells and edge infrastructure, the DigitalBridge team
manages over $70 billion of digital infrastructure assets on behalf
of its limited partners and shareholders. Headquartered in Boca
Raton, Florida, DigitalBridge has key offices in New York, Los
Angeles, London, Luxembourg and Singapore. For more information,
visit: www.digitalbridge.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” or “potential” or the negative of these
words and phrases or similar words or phrases which are predictions
of or indicate future events or trends and which do not relate
solely to historical matters. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond our control, and may cause
actual results to differ significantly from those expressed in any
forward-looking statement. Factors that might cause such a
difference include the impact of AI on demand for more data center
power and capacity, the accounting impact of the recapitalization
and other risks and uncertainties, including those detailed in
DigitalBridge’s Annual Report on Form 10-K for the year ended
December 31, 2022, Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2023 and June 30, 2023, and its other reports filed
from time to time with the U.S. Securities and Exchange Commission.
All forward-looking statements reflect DigitalBridge’s good faith
beliefs, assumptions and expectations, but they are not guarantees
of future performance. DigitalBridge cautions investors not to
unduly rely on any forward-looking statements. The forward-looking
statements speak only as of the date of this press release.
DigitalBridge is under no duty to update any of these
forward-looking statements after the date of this press release,
nor to conform prior statements to actual results or revised
expectations, and DigitalBridge does not intend to do so.
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version on businesswire.com: https://www.businesswire.com/news/home/20230914910481/en/
Investors: Severin White Managing Director, Head of Public
Investor Relations (212) 547-2777
severin.white@digitalbridge.com
Media: Joele Frank, Wilkinson Brimmer Katcher Jon Keehner /
Sarah Salky (212) 355-4449 dbrg-jf@joelefrank.com
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