Yondr Group, a hyperscale data center owner and operator, and JK Land Holdings, a Sterling-based real estate company have established a joint venture Yondr JK 1, LLC (the “Issuer”) to finance the construction of a hyperscale data center in Virginia. The facility with 48 MW of critical IT capacity will be built on an 14.3-acre property in Loudoun County.
The Loudoun County development adds additional capacity to one of the world’s largest data center markets, where operators have been expanding infrastructure to support cloud computing, artificial intelligence and other high-density workloads. The companies have not provided an official timeline for completion of the data center.
The project is priced at US$ 715 million aggregate principal amount of 6.875 percent senior (the “Notes”) to be delivered around June 30, 2026, subject to customary closing conditions through secured notes due 2031. The funding will also support debt service reserves and related costs associated with the offering as detailed in a Yondr press release.
“The Notes will be secured by first-priority liens on (i) substantially all assets of the Issuer, other than certain excluded property, and (ii) all equity interests of the Issuer held by Yondr JK 1 HoldCo, LLC, a Delaware limited liability company and the direct parent of the Issuer following the issuance of the Notes,” said the companies.
Financing was completed through a private offering to institutional investors under exemptions from US securities registration requirements. The Notes were offered to qualified institutional buyers in the US and non-US investors outside the country.
The Notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.