DigitalOcean secures $725 million equipment financing facility, up to $1.025 billion with accordion
DigitalOcean and its subsidiary entered into a $725 million equipment finance facility with MUFG entities to fund data center equipment, with an accordion feature that could raise total commitments to $1.025 billion. The company says it intends to exercise the accordion in full, subject to new or existing lenders committing, and the facility is guaranteed by the parent and certain subsidiaries and secured by the equipment. The new debt-like obligation carries fixed rates tied to term SOFR swaps plus 2.75% and financial covenants, and the CFO said the company remains highly confident in its 2026 guidance.
Key points
- Committed financing of up to $725 million; advances can fund up to 90% of equipment cost, with the balance paid as prepaid rent
- Accordion can add up to $300 million, for up to $1.025 billion in total, subject to lender commitments
- Advances available until September 10, 2027; rent amortizes each advance in full by September 10, 2030
- Each advance bears a fixed rate equal to term SOFR swap rate plus 2.75%; undrawn commitment fee of 0.20% rising to 0.40% six months after closing
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:17 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on September 10, 2026.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.