Blackstone-backed QTS has completed a USD 1.7bn private placement financing with four banks and maturities between five and fifteen years, according to sources familiar with the matter.

The notes priced in November in a deal led by Goldman Sachs, MUFG, SMBC, and BNP Paribas, the sources added. SMBC served as sole structuring agent.

NPM first reported on the deal last month.

Pricing on the notes was indexed to Treasury yields instead of the Secured Overnight Financing Rate (SOFR).

A five-year tranche priced at 150bps over the five-year Treasury yield, while the seven-year tranche priced at 160bps over, and the 10-year tranche priced at 170bps over.

Additionally, a 15-year tranche priced at 195bps over the 10-year Treasury yield, for a roughly 6% coupon.

The transaction received an A+ rating from Kroll, as previously reported.

QTS, Goldman, SMBC, and BNP did not respond to requests for comment. MUFG and Blackstone declined comment.

Based in Overland Park, Kansas, QTS operates over 70 facilities totaling more than 3 GW of capacity. It was acquired by Blackstone in 2021 for USD 10bn.

Blackstone announced in July a plan to spend USD 25bn on digital and energy infrastructure in Pennsylvania, to be led by QTS, which has acquired land in the northern part of the state to build data centers. QTS’ website notes that a 1,700-acre technology campus is under consideration for Salem Township.

QTS is also pursuing a multi-billion-dollar data center in Dane County, Wisconsin, announced earlier this month, and is advancing a 170-acre facility in York County, South Carolina.

In Utah, the firm is developing a 200-250 MW data center campus in Eagle Mountain City, with plans to build onsite gas power to fully power the project.

The company has additional projects under development in South Dallas, TX, Richmond, VA, Phoenix, New Albany, OH, Hillsboro, OR, Fayetteville and Augusta, GA, and Cedar Rapids, IA.