Managed hosting specialist Cervalis LLC has closed a $48 million senior credit facility with a commercial lending institutions, the company announced today. The company will use the money to build a new data center and business continuity facility in northern New Jersey and to refinance existing indebtedness.
"We are very pleased to have closed this important financing," said Michael Boccardi, CEO of Cervalis. "The additional capital will enable us to expand into a key market and meet customer demand for customized high availability, high power density data center and business continuity solutions."
In April Cervalis signed a long-term lease with Russo Development for a 148,191 square foot building in Totowa, N.J., which will house more than 50,000 square feet of data center space for Cervalis clients. The data center is Cervalis’ first facility in New Jersey, and will expand the company’s footprint to more than 280,000 square feet of space, with additional facilities in Wappingers Falls, N.Y. and Stamford, Ct.
DH Capital served as exclusive financial advisor to Cervalis on the senior credit facility transaction. "DH Capital did a terrific job guiding us through the entire process and bringing together a knowledgeable group of relationship-oriented lending institutions to support our growth strategy," said Boccardi.
"While the credit markets are still challenging, quality data center operators can attract capital for growth," stated Mark Thorsheim, Managing Director of DH Capital. "The lenders recognized the strength of Cervalis' existing business and understood the importance of the company's expansion. Cervalis will be rewarded for executing its business strategy and the lenders for supporting their plan."