John Bridge discusses materiality and disclosure in data center financings with 9fin

John Bridge spoke with 9fin about lenders’ growing focus on disclosure and construction risk in data center financings, including how borrowers and lenders approach material adverse event (MAE) provisions.

As investors seek greater visibility into construction progress and potential delays, John described the tension between lenders’ information needs and borrowers’ operational priorities.

“You’ve got the lenders on one side that want to have project finance-level, 360 degree information, and the borrower that wants to go about their business,” John said.

John also discussed the challenges of defining materiality. While he has not seen significant debate over MAE definitions in data center financings, he noted increased due diligence around obstacles that could delay construction.

Read the full article in 9fin.