The deal may be structured as a bridge facility, equally split into a term loan and revolving credit tranche, and clubbed between a group of banks. — Bloomberg
SINGAPORE: A consortium comprising of KKR & Co and Singapore Telecommunications Ltd (Singtel) is in talks with banks for a loan of around S$5bil (US$3.8bil) to support its proposed purchase of ST Telemedia Global Data Centres, according to people familiar with the matter.
The deal may be structured as a bridge facility, equally split into a term loan and revolving credit tranche, and clubbed between a group of banks, the people said, who asked not to be identified discussing private matters.
A subsequent takeout financing could follow, they said, adding that discussions are ongoing and details remain subject to change.
If finalised, this deal could mark Asia’s largest-ever leveraged buyout financing in the data centre sector, according to Bloomberg-compiled data.
It will also contribute to a wave of big ticket financing driven by surging demand for cloud services amid the region’s artificial intelligence boom.
The most recent comparable was a A$5.5bill (US$3.6bill) loan supporting Blackstone Inc’s A$24bil purchase of Australia’s AirTrunk in 2024.
Spokespeople for KKR and STT declined to comment, while Singtel didn’t respond to requests for comment.
Based in Singapore, STT GDC is one of Asia’s largest data centre operators, with over 100 data centres across 20 markets including India, South Korea, Japan and Malaysia, according to its website.
The company also maintains a presence in Europe, with operations in the UK, Italy and Germany.
The proposed buyout follows the consortium’s S$1.75bil investment last year for a minority stake in STT GDC, Bloomberg News reported.
Following that transaction, KKR holds approximately 14.1% of the company.
Meanwhile Singtel, owned by Singapore state-owned investor Temasek Holdings Pte, owns 4.2% of the company. — Bloomberg
