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Global Switch Holdings Limited ("Global Switch"), the leading wholesale carrier neutral data centre owner and operator in Europe and Asia-Pacific and rated BBB by Fitch and Baa3 by Moody's, has launched its inaugural bond transaction.
Proceeds of the transaction will be used to pay off existing inter group indebtedness. The new EUR 600 million benchmark matures on April 18th 2018, pays a coupon of 5.5% and was priced at mid-swaps +207bp, equivalent to DBR 4.00% Jan 2018 +240.7bp.
Joint bookrunners were Barclays Capital, Credit Suisse, Deutsche Bank, HSBC.
John Corcoran, Executive Chairman, Global Switch, said "we were delighted with the strong investor interest shown in Global Switch with the issue being substantially over-subscribed, giving a clear endorsement of our business model and financial standing."
Background to Global Switch
Execution highlights
Summary of the distribution
The final distribution shows a well-diversified investor base both in terms of geographic area and investor types, with a high level of real money participation.
European buyers across many major regions were quick to react to the new deal with the bulk of the distribution being split amongst the United Kingdom (45%), Germany (25%), Scandinavia (12%), Netherlands (8%) and Switzerland (7%).
Distribution by investor type was skewed to real money accounts, with fund managers (75%), insurance/pension funds (10%) and banks (7%) accounting for the placement.
Summary of terms and conditions
| Issuer | Global Switch Holdings Limited |
| Issue ratings | Baa3 / BBB |
| Pricing date | 11th April 2011 |
| Settlement date | 18th April 2011 |
| Maturity date | 18th April 2018 |
| Size | EUR 600,000,000 |
| Coupon | 5.5% annual ACT/ACT |
| Re-offer spread | MS +207 bp; DBR 4.0% Jan 2018 +240.7 bp |
| Re-offer price | 99.631% |
| Listing | London Stock Exchange |
| Joint bookrunners | Barclays Capital, Credit Suisse, Deutsche Bank, HSBC |
Notes to editors:
Global Switch
Global Switch is the largest wholesale carrier neutral data centre owner and operator in Europe and Asia-Pacific and is 100% owned by the Reuben brothers (see www.reubenbrothers.com). Established in 1998, the company offers best in class operational performance. Global Switch is a vital strategic partner for customers that require secure and resilient data centre services with scalable capacity and a high level customer service.
The data centre industry has seen and is continuing to experience significant demand for space due to a number of factors including: the rapid growth of the internet especially in terms of increasing numbers of users who are expecting more on demand information and richer content; the increase of cloud computing technology and SaaS (Software as a Service); the rising trend to outsource IT infrastructure and company owned data centres to experienced and secure providers, and the continuing introduction of wide ranging regulation and legislation around the storage of data.
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