(WEB HOST INDUSTRY REVIEW) — Colocation and network services provider Telx Group (www.telx.com) announced on Thursday it has closed a $175 million senior secured credit facility, including a $25 million revolving line of credit.
The company used the proceeds of the loan to repay outstanding debt under its current credit facility.
This includes a loan secured by its data center at 56 Marietta in Atlanta, as well as to provide for “future working capital requirements and for other general corporate purposes.”
Additionally, the revolving line of credit will be used for future working capital requirements and other general corporate purposes.
The term loan portion of the senior secured loan has a term of five years and the revolving line of credit has a four year term.
“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,” says 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.”
Goldman Sachs Lending Partners 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 as documentation agent.
Telx operates 15 data centers in New York, Illinois, California, Georgia, Arizona, Florida and North Carolina.
In March, the company filed the preliminary paperwork with the US Securities and Exchange Commission for an IPO intended to raise up to $100 million.
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