Data Center Developer Princeton Digital Hires Barclays, BNP, DB for $400M Private Financing

Singapore-based data center developer Princeton Digital Group has engaged Barclays, BNP Paribas and Deutsche Bank to arrange an about $400 million private loan, according to two sources familiar with the matter.

Each bank will help arrange one third of the proposed financing, including holding a minimum $75 million, said the sources.

Under the planned terms, the company has the option to pay either SOFR plus 465 basis points cash or SOFR plus 550 basis points PIK,, the sources said.

The proceeds of the proposed financings are to be used for repaying shareholder loans and general corporate uses, the sources said.

Established in 2017, Princeton Digital develops and operates more than 20 data centers across six Asian countries including Singapore, Japan, India, Indonesia, China and Malaysia, according to the company’s website. Founded in 2017 by Rangu Salgame, the company raised early equity from Warburg Pincus, which were later joined as shareholders by Ontario Teachers’ Pension Plan Board and Mubadala Investment Company.

In February, Blomberg reported that a number of investors were considering bidding for Princeton Digital, including Blackrock unit Global Infrastructure Partners. The article added that the deal could value the company at $4 billion and that it was at the time still exploring whether to sell a minority stake or control.

The company announced in 2017 that it has obtained “backing” of up-to $300 million from an affiliate of Warburg Pincus, without specifying the structure of the funding. In 2020, it announced closing a $360 million equity raise led by Ontario Teachers’. Then in 2022, Mubadala led a more than $500M equity round also participated by Warburg and Ontario Teachers.

Last year, Princeton Digital announced closing two bank facilities. In May, it announced locking in a 1.276 billion Malaysian ringgit (USD280 million) green loan from Maybank, Standard Chartered Bank and UOB Malaysia for its 150MW, AI-ready JH1 campus in Johor, Malaysia’s Sedenak Tech Park (STeP).

In June, the company announced raising a $95 million green loan for its SG1 data center in central Singapore from Sumitomo Mitsui Banking Corporation (SMBC) and Societe Generale.

Princeton Digital and BNP Paribas did not respond to requests for comment. Barclays and Deutsche Bank declined to comment.

Datacenters have been an attractive sector for private credit in APAC, though there have been some challenges because of the sensitivity the US has for providing its technology to China. As reported, Nomura at least as of last month was struggling to sell down a $120 million, four-year private credit debt facility for Singapore-based AI-focused data center company Firmus Technologies because of concerns by targeted private credit funds over the impact of US export restrictions on high-end GPUs.