New York, NY (June 17, 2010) – The Telx Group, Inc., a leading interconnection and colocation provider in strategic North American markets, today announced that it closed a $175 million senior secured credit facility, including a $25 million revolving line of credit.
“This new secured credit facility strengthens our long-term capital structure and positions us for future growth as a leading provider of interconnection and colocation services,” said Chris Downie, President and Chief Financial Officer of Telx. “We are pleased to receive continued support from the financing community in recognition of Telx’s strong business model and continued growth.”
The proceeds of the senior secured credit facility term loan were used to repay indebtedness outstanding under its current credit facility, the loan secured by its data center facility at 56 Marietta in Atlanta and other minor indebtedness, and to provide for future working capital requirements and for other general corporate purposes. The revolving loan was undrawn at closing and will be used for future working capital requirements and other general corporate purposes. The term loan portion of the senior secured credit facility has a term of five years and the revolver portion has a term of four years.
Goldman Sachs Lending Partners LLC and Deutsche Bank Securities acted as Joint-Lead Arrangers and along with Royal Bank of Canada and SunTrust Robinson Humphrey as Bookrunners and ING Capital LLC as Documentation Agent.
Telx is a leading provider of interconnection, colocation and business exchange services in strategic, high demand North American markets. With 15 premier facilities, Telx increases speed to market and reduces connectivity costs by providing direct connections to the industry’s highest performance networks and access to more than 800 leading telecommunications carriers, ISPs, content providers and enterprises. Telx is headquartered in New York City with four facilities in the New York Metro area, two facilities in Chicago, two facilities in Dallas, three facilities in California, (Los Angeles, San Francisco and Santa Clara) and facilities in Atlanta, Miami, Phoenix and Charlotte, N.C. For more information about Telx, visit www.telx.com.
The Telx Group is majority owned by GI Partners, a private equity investment firm with approximately $4 billion of assets under management.