Cervalis Gets $20M Expansion Financing
April 9th, 2007 By: Rich Miller
Managed hosting provider Cervalis LLC has lined up a $20 million senior credit facility to fund a data center expansion, the company said today. The Stamford, Ct. provider has closed on a credit facility provided by MCG Capital Corporation (MCGC). “The additional capital will enable us to successfully expand our business strategy of providing high availability data center facilities and services to our clients,” said Michael Boccardi, CEO of Cervalis.
Cervalis is in the process of building a $15 million new data center in Stamford, having reached capacity at its 70,000-square-foot facility in Wappingers Falls, N.Y., and a 9,000-square-foot existing facility in Stamford. The company will convert a commercial building into a state-of-the-art facility, Boccardi said.
Cervalis was advised on the deal by DH Capital, LLC, an investment banking firm serving the hosting and cable television industries. “MCG is premier financial partner and highly experienced in assisting dynamic growth companies like Cervalis in financing their expansion strategies,” said Mark Thorsheim, Managing Director of DH Capital.
MCG Capital provides capital to support growth strategies of small- to mid-sized companies. Since 1990, MCG has delivered value for financial sponsors and operators in approximately 480 diversified financings representing cumulative investments of approximately $5.1 billion.