Stoneweg Europe Stapled Trust has invested another €50 million in AiOnX, its sponsor’s private European data centre development platform, via a mandatory convertible loan carrying a coupon of 7.25% p.a with a tenure of seven years.
Upon maturity, the loan can be converted into AiOnX shares at discount up to a multiple on invested capital of 2.0x.
"The investment also offers meaningful long-term value," says Simon Garing, CEO of the manager, who had already invested €50 million into AiOnx last June.
SERT expects this investment, to help fund AiOnX's five ongoing data centre projects, will drive its own NAV and DPS growth.
With this additional investment, SERT's data centre allocation will be increased from 5.2% as of last year to around 7.2% its portfolio value, with a goal of increasing this proportion to between 15 and 25%.
Garing says AiOnX is "exceptionally well-placed" to capture data centre growth, with its "proven development model that generates substantial early-stage development profits once power, permitting, and pre-lease commitments are secured."
According to SERT, the MCL delivers immediate income with coupon of €3.625 million per annum from the MCL that will be paid semi-annually, which would have raised its DPS by 2% per year.
SERT unit closed at €1.50 on March 25, down 6.25% year to date.
