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Glossary / finance terms

Single-asset, single-borrower (SASB)

A CMBS deal backed by one loan to one borrower, often on a large data centre portfolio.

How it works

A single-asset, single-borrower (SASB) CMBS is backed by one mortgage loan to one borrower, rather than a pool of loans to many borrowers. The investors take the credit of that single property or portfolio.

In GPU and data centre deals

SASB has become a common route for large data centre refinancings because it lets sponsors raise large amounts against one campus or portfolio. Investors focus on the tenants, the lease terms and the value of the property, and on the cash management provisions that apply if performance falls.

What gets negotiated

  • Loan to value and debt yield
  • Floating rate with an interest rate cap, or fixed rate
  • Extension options
  • Cash trap and sweep triggers

How it works in a deal

A single-asset single-borrower CMBS is secured on one property or one portfolio owned by one borrower, rather than a pool of unrelated loans. Investors underwrite that borrower's assets and leases directly, so disclosure is detailed and the structure is often floating rate with extension options.

Example. Blackstone's BX 2025-VOLT deal was a US$3.5bn CMBS secured on about ten QTS data centres, with a two-year initial term and three one-year extensions. QTS: BX 2025-VOLT CMBS →

For in-house counsel

Take it to the documents

The filed wording behind GPU and data centre financings, for either side of the table. Previews are open; the full text is free with InfraCompute Weekly.

Related terms

Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.

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Randeep Bubbra

InfraCompute Weekly

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