Fleet Data Centers Sets Pricing for $3.8 Billion in Senior Secured …

Fleet Data Centers has recently announced the pricing of $3.8 billion of senior secured notes for its Hyperscale facility located in the rapidly growing Reno Hub. This news comes as a significant development for Fleet Data Centers, a company known for developing and operating mega-scale, single-user data center campuses.

The $3.8 billion aggregate principal amount of 5.875% senior secured notes due in 2031, known as the “Notes,” will be sold in a private offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as well as to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.

The net proceeds from the offering of the Notes will be used by Fleet Data Centers to fund a portion of the development and construction of a 230 megawatt (MW) utility capacity project, which includes a turnkey data center and electrical substation. This project will be constructed on a 252-acre property in Storey County, Nevada. The data center is fully leased to a AA- investment grade tenant with a market cap exceeding $3 trillion under a 197-month ‘triple net’ lease.

The Notes will accrue interest at a rate of 5.875% per annum, payable semi-annually in cash in arrears on March 1 and September 1 of each year, starting from September 1, 2026. The Notes will mature on March 1, 2031 and will also be subject to amortization payments of 2.500% of the original aggregate principal amount, payable semi-annually.

Security for the Notes will be provided by first-priority liens on substantially all assets of the Issuer, excluding certain property, as well as on all equity interests of the Issuer held by SV RNO HoldCo, LLC. The closing of the offering is subject to customary conditions, with the expectation of the Notes being delivered via DTC around February 24, 2026.

It is important to note that the Notes have not been registered under the Securities Act or securities laws of any other jurisdiction. They may not be offered or sold in the United States without registration or an applicable exemption from registration under the Securities Act and relevant state securities laws.

Fleet Data Centers, a portfolio company of Tract Capital, focuses on providing build-to-suit data centers at scale to hyperscalers, enterprises, and organizations using data center infrastructure through campus-level leases. Tract Capital, founded by CEO Grant van Rooyen, emphasizes the responsible development and delivery of technology infrastructure, bringing together operational capabilities and expertise in planning, development, energy, digital infrastructure, and real estate.

In conclusion, the announcement of the pricing of $3.8 billion of senior secured notes for the Hyperscale facility in Reno reflects Fleet Data Centers’ commitment to expanding and enhancing its data center offerings in response to the growing demand for digital infrastructure.