Iskandar and Kaveh Launch $1.4 Billion Asset-Backed Securities for Data Centers
Iskandar Enterprise and Kaveh Enterprise are offering $1.4 billion in asset-backed securities secured by Virginia data centers. The transaction is set to close on May 1, with liquidity reserves and credit enhancements in place to manage risk.
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Iskandar Enterprise and Kaveh Enterprise are raising $1.4 billion through asset-backed securities backed by two data centers in Ashburn, Virginia. The first-lien, limited-recourse mortgages will be secured by properties totaling one million square feet and 160 megawatts of capacity.
The transaction is scheduled to close on May 1, with a liquidity reserve of approximately $16.3 million established to enhance credit. Analysts from Fitch Ratings and S&P Global Ratings have evaluated the deal, assigning ratings across various tranches, including 'A' for the A-2 III tranche. Credit provisions include cash-trapping triggers based on debt service coverage ratios, with expected paydowns reducing LTV to 22% over 25 years.
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