Telx, a New York-based interconnection and colocation data center operator,m has raised $43.5 million in new private funding. RBC Capital Markets was joined by return backers CIT Communications and Media & Entertainment.
Telx, one of the largest domestic interconnection and colocation data center operators, announced today that it has secured USD$43.5 million in new financing from CIT Communications, Media & Entertainment and RBC Capital Markets, replacing its former term loan and providing funding for new projects and business enhancements. Terms of the transaction were not disclosed.
CIT Communications, Media & Entertainment arranged financing from RBC Capital Markets based on Telx’s strong, sustained growth; the strength of Telx’s business model and customer base; and the data center market as a whole. The company’s business plan was fully funded under its former financing and this new deal provides significant opportunities to enhance capabilities and explore new technologies that will expand the services that Telx is able to offer its customers. While RBC Capital Markets is a new lending partner to the Company, CIT has been a financing partner since 2007.
“We were pleased to arrange this financing for Telx, which has experienced significant growth over the past four years,” said Joseph E. Junda, Senior Director of CIT Communications, Media & Entertainment. “This transaction represents our continued support for companies in the growing telecommunications sector.”
Telx plans to use the additional funding to pursue continued expansion in existing cities to meet ongoing customer demand. When appropriate, the company will also give consideration to entrance into new markets as needed. Telx continued its strong growth by achieving 39 percent revenue growth in Q1’09, compared to the same period last year.
“Despite a challenging economy, Telx continues to experience solid revenue growth across multiple market verticals,” said Chris Downie, President and Chief Financial Officer for Telx. “The company’s business model has proven itself not only viable, but strong, and we expect to continue to deliver the same positive results in the coming years based on industry demand for colocation and interconnection services in our facilities. We’re pleased to have CIT and RBC, who each has an in-depth knowledge of our industry, as our financial partners and appreciate their support for our continued business endeavors.”
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Telx is a world-class leader in providing interconnectivity solutions through their network-neutral and network rich, colocation facilities. With over a dozen facilities in North America, Telx offers cost effective networking solutions for customers to seamlessly access diverse global networks and exchange information in a secure and reliable environment. Over 600 leading telecommunications carriers, ISPs, content providers and enterprises rely on Telx’s world-class team to support their mission-critical global infrastructure needs and to create a global connectivity marketplace to dramatically expand their business growth opportunities. Telx is a privately held company headquartered in New York City with facilities in New York, Atlanta, Chicago, Dallas, Los Angeles, San Francisco, Santa Clara, Miami, Phoenix, Charlotte, as well as Weehawken and Clifton, N.J. For more information about Telx, visit www.telx.com.