Telx Revises and Expands Credit Line
March 25th, 2011 By: Rich Miller
Interconnection and colocation specialist Telx Group has closed a $200 million amendment and senior secured credit facility, including a $25 million revolving line of credit, the company said today. The refinancing allowed Telx to reduce the interest rates on its term loan and add an incremental term loan of $50 million.
“This amendment to improve our rates and new incremental secured credit facility continues to position us for future growth as a leading provider of interconnection and colocation services,” said 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 growth.”
The proceeds of the incremental senior secured credit facility term loan will be used for facility expansions, while the revolving loan was undrawn at closing and will be used for future working capital requirements. The term loan portion of the senior secured credit facility has a term of five years and the revolver portion has a term of four years from the closing date of the original term loan in June 2010.
Goldman Sachs Lending Partners LLC acted as Lead Arranger and along with SunTrust Robinson Humphrey as Bookrunner and ING Capital LLC as Syndication Agent.