Posted on 06/19/2022
DigitalBridge Group, Inc. (NYSE: DBRG) disclosed the recapitalization of its portfolio company DataBank, a U.S.-based data center platform. The initial stage of the recapitalization is being structured as a sale of ownership interests to affiliates of Swiss Life Asset Management AG and EDF Invest. Under the terms of the agreement, Swiss Life Asset Management and EDF will acquire 27% of the fully diluted equity interests in DataBank for approximately US$ 1.2 billion in cash from existing investors.
DigitalBridge acquired DataBank in 2016.
Upon completion of this initial phase of the recapitalization and pursuant to the transaction announced in this release, DigitalBridge’s ownership interests in DataBank will be reduced to 15.5% and DigitalBridge will receive cash proceeds of $230 million, implying a pre-transaction net value of $906 million, inclusive of retained net value of $676 million.
Subsequent stages of the recapitalization are expected to result in incremental new investors acquiring ownership interests in DataBank from existing investors, including DigitalBridge, prior to the anticipated completion of the recapitalization in the fourth quarter of 2022. The recapitalization transactions are and will be subject to various closing conditions, including receipt of required regulatory approvals.
Swiss Life Asset Managers was advised by DH Capital as financial advisor and Vinson & Elkins LLP as legal advisors. DataBank was advised by Goldman Sachs as financial advisor and Proskauer Rose LLP as legal advisors. DigitalBridge was advised by Wachtell, Lipton, Rosen & Katz as legal advisors. PJT Partners acted as exclusive financial advisor to DigitalBridge’s Independent Transaction Committee of the Board of Directors.
Keywords: Swiss Life Holding AG (Swiss Life Group), EDF.