Morgan Stanley Sells ABS Deal After Delay Over Alibaba Risk

Banks led by Morgan Stanley have finalized the sale of $589 million in data center bonds by ServerFarm, after delaying the deal on concerns over the data centers’ reliance on revenue from Chinese technology giant Alibaba Group Holding Ltd.

The deal was initially expected to price last week, but the timing was extended in order to address investor jitters and add a new risk disclosure section to bond documents, according to people familiar with the matter. The disclosure highlighted that an Alibaba affiliate accounts for over one-fifth of the deal’s annualized revenue from customer contracts.