Strategic Data Center Fund Manager, LLC announced it has secured a revolving line of credit that converts into a permanent loan from Sunflower Bank. The credit facility will initially provide the ability to borrow up to $25,000,000. Over time, and subject to certain conditions, Strategic Data Center anticipates increasing the size of the facility to aggregate commitments of up to as much as $200,000,000. The Company believes the credit line will significantly enhance its ability to continue acquiring and developing a diversified portfolio of data center real estate assets within the U.S.
Sunflower Bank expedited the close of the first $25 million of the line of credit to help facilitate the acquisition of a data center property under the timeline of the seller. As Strategic Data Center continues to execute on acquisition opportunities and extend its reach, Sunflower Bank plans to lead a syndication to expand the credit facility and include other lenders with backgrounds in the commercial real estate sector.
"We appreciate the confidence and commitment that Sunflower Bank has made to our company,” said Bryan Marsh, Chief Executive Officer of Strategic Data Center. “This credit facility provides us with the flexibility to capitalize on the growing number of data center opportunities in our pipeline. It also serves as a testament to the Company’s investment thesis, operational strength and ability to execute within the data center real estate arena,” Marsh added.
“We were pleased to work with the management team at Strategic Data Center to meet the company’s financing needs in such a dynamic sector that is vital to our country’s infrastructure,” said Neal Arnold, CEO and President of Sunflower Bank. In addition, he pointed out that successfully closing this transaction in the current environment demonstrates Sunflower Bank’s expertise across the commercial real estate sector and its ability to structure effective solutions for their clients.
“We are excited about the opportunities within the data center real estate sector and we look forward to supporting Strategic Data Center as they continue to grow their business over time,” added Brian Walsh, Executive Vice President of Sunflower Bank. “This credit facility is an example of our commitment to creating lasting partnerships with strong, growing businesses.”