Kirkland Advises Switch on Close of $840 Million Asset-Backed Securities Offering

Kirkland & Ellis advised Switch, a premier provider of AI, cloud and enterprise data centers, on the closing of an asset-backed securities offering, raising approximately $840 million through its Series 2026-2/3 issuances. The Class A-2-I Notes are rated AAA (sf) by DBRS Morningstar and the Class A-2-III Notes are rated A(sf) by Fitch and A(low)(sf) by DBRS Morningstar. The Series 2026-2 Notes have an anticipated repayment date of October 2031 and the Series 2026-3 Notes have an anticipated repayment date of October 2029. Net proceeds from the offering will be used to repay existing debt and for general corporate purposes. The transaction adds two new facilities to the securitized pool: an Austin, Texas-based data center of approximately 90,000 square feet and an Atlanta, Georgia-based data center of approximately 310,000 square feet. The facilities contribute approximately 25 MW of capacity.

The Kirkland team included structured finance lawyers Kelly Mellecker, John Harrison, Kelli Johnson, Amer Mohiuddin and Suril Patel; investment funds lawyers Erald Sakiqi, Joseph Lifsics and Christine Matott; real estate lawyers David Arbus and Natalie Batlle; tax lawyers Ben Schreiner, Richard Husseini, Jon Nelsen and Matthew Buono; capital markets lawyers Ross Leff and Leia Pearl Andrew; and litigation lawyer Nick Niles.