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Telx has secured a US$75m loan from a group of lenders – money it primarily plans to use to boost its liquidity, the company said Tuesday.
Chris Downie, the company’s president and CFO, said the transaction positioned the colocation and interconnection services provider’s for growth in 2012 and beyond.
“We are pleased to receive continued support from the financing community in recognition of Telx’s outstanding service to its clients and strong business model,” Downie said.
The lenders included Morgan Stanley, TD Securities as lead arrangers. Telx is owned by two Boston-based investment firms, ABRY Partners and Berkshire Partners.
This is the third announcement of fresh capital raises by data center companies this month. Until very recently, the sector was considered an esoteric and risky one to put money into by the general financial community. That coupled with the recent economic crisis has made it extremely difficult for data center companies to raise debt or equity funding.
The amount of money raised last year and the string of funding announcements companies made this year already, however, is a sign of recognition by lenders and private-equity players that data centers comprise a well-performing sector.
The other transactions announced in February included a $270m credit facility by QTS and a $135m credit facility by Vantage.