365 Data Center said March 20 that it refinanced its existing debt and secured additional debt financing from Antares, TD Securities, and ING Capital LLC. It also received add-on equity funding commitments from current investors. Chirisa Investments, Lumerity Capital LLC and Longboat Advisors LLC acquired 365 Data in 2017.
NORWALK, Conn., March 20, 2019 /PRNewswire/ — 365 Data Centers, a leading provider of hybrid data center services for carrier, content and enterprise customers, today 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.
Driven by increased demand for colocation, network, cloud and other managed services at its network connectivity rich, carrier meet-me-point facilities, the financing commitments come as 365 plans for further substantial internal and external growth. Recent investments in its team, facilities and systems, network, service offerings, and direct and channel sales organizations, all of which are now highly scalable, have positioned the Company for growth.
In April 2017, the current owner-operators of 365 Data Centers initiated acquisitions of ten, primarily edge, data centers in Boca Raton, Buffalo, Chicago, Detroit, Fort Lauderdale, Indianapolis, Nashville, Philadelphia, New York City and Tampa.
Throughout 2018, the Company expanded and upgraded its network by equipping and redundantly connecting all ten data centers and twenty additional points of presence. It invested in cloud, back-up, and Disaster-Recovery-as-a-Service platforms to add capacity and enhance performance, rolled out network, cloud, and other managed services in all ten markets, added to its network, cloud, finance, and sales leadership, significantly improved EBITDA, and became a scalable Infrastructure-as-a-Service business.
“Our demonstrated ability to finance, acquire, and integrate complementary platform assets into a scalable provider of hybrid data center services, while generating significant financial performance improvements, rendered an attractive financing opportunity to a syndicate of lenders who are the leaders in the data center financial markets,” said Bob DeSantis, CEO of 365 Data Centers. “We are pleased to have refinanced our existing debt on very favorable 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.”
“365’s ability to efficiently acquire and integrate data center, 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.”
“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.”
“Not yet two years into our transformational ownership of 365 Data Centers, we and our team and our customers today embark on the next exciting chapter of continued improvement, further scaling of our business and services, and active expansion through acquisition, with the benefit of multiple experienced financing partners working closely with us to support our goals,” said Colm Piercy, Principal at Chirisa Investments.
Antares served as Administrative Agent, Joint Lead Arranger and Sole Bookrunner. TD Securities served as Syndication Agent and Joint Lead Arranger, and ING Capital LLC served as Documentation Agent and Joint Lead Arranger.
Shipman & Goodwin LLP served as Borrower’s Counsel and Weil, Gotshal & Manges LLP served as Lenders’ Counsel.
About 365 Data Centers:
365 Data Centers is a leading provider of hybrid data center solutions in ten edge markets. With data centers in Boca Raton, Buffalo, Chicago, Detroit, Fort Lauderdale, Indianapolis, Nashville, Philadelphia, New York City and Tampa that serve as regional hubs for carriers, the Company operates a total of 169,000 square feet of data center space, 13 MW of power, and a redundant, low latency, nationwide fiber network, including direct connectivity to the NAP of the Americas. Our robust, carrier neutral ecosystem and secure, reliable edge colocation, network, IP, DRaaS, backup, cloud compute and storage, and business continuity services help organizations reduce costs, drive innovation and improve their customer experience. 365 Data Centers supports mission-critical application infrastructure by providing industry leading SLA protections and adhering to industry compliance standards such as HIPAA, PCI DSS, VISA, SSAE 16, SOC 2 and ISAE 3402. 365 Data Centers’ corporate office is located in Norwalk, Connecticut. Visit https://www.365datacenters.com/ for more information.
With approximately $24 billion of capital under management and administration as of December 31, 2018, Antares is a private debt credit manager and leading provider of financing solutions for middle-market private equity-backed transactions. In 2018, Antares issued over $25 billion in financing commitments to borrowers through its robust suite of products including first lien revolvers, term loans and delayed draw term loans, 2nd lien term loans, unitranche facilities and equity investments. Antares world-class capital markets experts hold relationships with over 400 banks and institutional investors allowing the firm to structure, distribute and trade syndicated loans on behalf of its customers. Since its founding in 1996, Antares has been recognized by industry organizations as a leading provider of middle market private debt, most recently being named the 2018 Lender of the Year by ACG New York. The company maintains offices in Atlanta, Chicago, Los Angeles, New York and Toronto. Visit Antares at www.antares.com or follow the company on Twitter at www.twitter.com/antarescapital. Antares Capital is a subsidiary of Antares Holdings LP., collectively (“Antares”).