Shearman & Sterling advised Citibank as administrative agent in connection with Digital Realty’s agreement to acquire Ascenty for approximately $1.8 billion. Ascenty is a leading data center provider in Brazil. Digital Realty is a leading global provider of data center, colocation and interconnection solutions.
Digital simultaneously entered into an independent bilateral equity commitment letter with Brookfield Infrastructure in exchange for 49% of the total equity interests in a joint venture entity expected to ultimately own Ascenty. Brookfield Infrastructure is an affiliate of Brookfield Asset Management, one of the largest owners and operators of infrastructure assets globally.
The transaction involved commitments for senior secured credit facilities comprised of (i) a $50 million first lien revolving credit facility, (ii) an up to $650 million first lien term loan facility and (iii) a $75 million first lien delayed draw term loan facility. The loans will each mature five years from the ultimate transaction closing date.