365 Data Centers secures extra growth financing commitments
The financing commitments come as 365 plans for further internal and external growth, driven by increased demands for colocation, network and cloud.
Hybrid data centre provider 365 Data Centers has announced that it has refinanced its existing debt and secured additional debt financing commitments from Antares, TD Securities, and ING Capital LLC, and received add-on equity funding commitments from its current investors.
365 Data Centers mentioned that the recent investments in its team, facilities and systems, network, service offerings, and direct and channel sales organisations, all of which are scalable, have positioned the company for growth.
Two years ago, the current owner-operators of 365 Data Centers initiated acquisitions of 10 edge data centres in Boca Raton, Buffalo, Chicago, Detroit, Fort Lauderdale, Indianapolis, Nashville, Philadelphia, New York City and Tampa.
“Our demonstrated ability to finance, acquire, and integrate complementary platform assets into a scalable provider of hybrid data centre services, while generating significant financial performance improvements, rendered an attractive financing opportunity to a syndicate of lenders who are the leaders in the data centre financial markets,” said Bob DeSantis, CEO of 365 Data Centers.
“We are pleased to have refinanced our existing debt on very favourable terms, as warranted by our continuous deleveraging, and have secured additional equity and debt funding commitments.
“The now expanded lender base and financing capacity along with continued support from our current investors, Chirisa Investments, Lumerity Capital, and Longboat Advisors, well positions 365 to continue to make prudent investments in support of our growth strategy.”
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Throughout 2018, the company expanded its network by equipping and redundantly connecting all ten data centres and twenty additional points of presence, and it invested in cloud, back-up, and Disaster-Recovery-as-a-Service platforms to add capacity.
“365’s ability to efficiently acquire and integrate data centre, network, and cloud operators while maintaining a focus on customer service and financial results is impressive,” said Sean Sullivan, Managing Director with Antares.
“We are pleased to once again support 365’s CEO and his equity partners, and provide the financing to help drive the Company’s transformation, maturation and growth.”
365 Data Centers said that all this improved its EBITDA, and became a scalable Infrastructure-as-a-Service business.
“We look forward to working with 365’s new lending partners, who have unparalleled sector knowledge and appreciation for the growth opportunities that lie ahead for the Company,” said Matt Kim, Managing Partner of Lumerity Capital.
“Having established a highly scalable platform that leverages unique carrier-dense facilities in edge locations, 365 is poised to execute on significant growth, driven by strategic acquisitions as well as organic initiatives.”
Shipman & Goodwin LLP served as Borrower’s Counsel and Weil, Gotshal & Manges LLP served as Lenders’ Counsel.