Global Switch launches inaugural bond issue
April 13, 2011
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
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
- Global Switch, established in 1998, is the leading wholesale
carrier neutral data centre owner and operator in Europe and
- Global Switch owns and operates seven data centre campuses,
with a second phase of its data centre under construction in its
Paris campus (due for completion in September 2011).
- The data centres are located in the Tier 1 markets of London,
Paris, Amsterdam, Frankfurt, Madrid, Singapore and Sydney.
- The data centres which total 290,000 sq m (3 million sq ft) of
gross space have been independently valued by CB Richard Ellis at
£3.0 billion as at 31 December 2010 (assuming completion of the
second phase of the data centre in Paris).
- Global Switch's date centres have a 93% occupancy rate and
operate with 99.999% uptime reliability.
- Global Switch announced its intention to present to
pan-European debt investors on 31st March 2011 and
conducted a 5-day roadshow visiting London, Paris, Amsterdam,
Frankfurt and Edinburgh.
- Following positive feedback and with stable market conditions
Global Switch announced the transaction on the morning of Monday
- At 8.40am, the order book opened with price guidance of
mid-swaps +210 to +220bp for a Euro 500 million transaction.
- With strong investor interest from the outset, the vast
majority of orders placed at re-offer. The book went
subject at 9.45am and closed shortly thereafter with
orders of over €2.5 billion.
- The transaction terms were announced at 10.40am. Due to
investor demand the deal was increased to €600 million with the
spread set at mid-swaps +207bp, tighter than the initial price
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
Global Switch Holdings Limited
Baa3 / BBB
11th April 2011
18th April 2011
18th April 2018
MS +207 bp; DBR 4.0% Jan 2018 +240.7 bp
Capital, Credit Suisse, Deutsche Bank, HSBC
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
This announcement may not be distributed, directly or
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or any other jurisdiction. This announcement does not constitute or
form part of an offer or invitation to sell or issue, or any
solicitation of an offer to buy or subscribe for, any securities
referred to herein, in the United States or any other jurisdiction
nor shall it (or any part of this announcement) or the fact of its
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