DigitalOcean secures $725M financing facility from MUFG
Company plans to use funding for AI infrastructure expansion
DigitalOcean Holdings secured a $725 million equipment finance facility to fund purchases of data center equipment.
The facility includes an option that could increase total financing to $1 billion, according to a Sept. 10 filing with the SEC.
AI cloud infrastructure provider DigitalOcean plans to use the financing to align equipment-related cash outflows more closely with revenue while expanding capacity for its AI-native cloud platform, according to the filing.
The company will fund the remaining amount as prepaid rent, while the lessor, MUFG Americas Capital Leasing & Finance, will acquire the equipment and lease it to DigitalOcean, according to the filing. DigitalOcean expects to account for the transactions as finance leases.
The facility includes a $300 million accordion feature that DigitalOcean intends to exercise in full, subject to lender commitments and other conditions.
MUFG Bank serves as administrative and collateral agent, according to the filing. MUFG. The facility is guaranteed by DigitalOcean and certain subsidiaries and is secured by the financed equipment and related collateral, according to the filing.
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