DigitalBridge Group, Inc. (NYSE: DBRG), through its subsidiaries DigitalBridge Co-Issuer, LLC and DigitalBridge Issuer, LLC, will raise $300 million for general corporate purposes.
DigitalBridge, leading digit infrastructure REIT, issuing Class A-2 Notes and Class A-1 Noted to raise $300 million through private placement. The proceeds of the offerings is expected to use primarily for the general corporate purpose.
As per the management, the Class A-2 notes (Series 2021-1 3.95% Secured Fund Fee Revenue Notes), interest on these notes will be payable every quarter. In addition to Class A-2 notes, the company will issue Class A-1 notes simultaneously, which will allow the company (co-issuer) to borrow close to $150 million on a revolving basis. There is a possibility that co-issuer may increase the principal amount of Class A-1 notes to $200 million. The closing of the issue of these notes is getting complete on 9th July, 2021.
The company manages approximately $32 billion of portfolio and has been investing in various assets across the digital ecosystem which includes data centers, small cells, towers, to name a few. Though the company is managing such an extensive portfolio, but the key thing to watch out that to fund the corporate expenses, they are raising funds. This indicates that the income flow has been impacted during the lockdown, it seems.
Revised guidance higher
During their investor day, the company revised its guidance upwards for the near term and for 2025. Overall guidance for 2021 was updated by $5-10 million for digital IM revenue and ~$2mn for operating EBITDA. For 2025, the company stated they would be achieving revenue of $500-600 million, with an operating EBITDA of $225-275 million. The upward revision in guidance indicates the traction in the digital business for the company.