365 Data Centers Refinanced Existing Debt

365 Data Centers, provider of hybrid data center services for carrier, content and enterprise customers, refinanced its existing debt and secured additional debt financing commitments from Antares Capital, subsidiary of Antares Holdings LP, TD Securities, and ING Capital LLC, and received add-on equity funding commitments from its current investors.

Driven by increased demand for co-location, 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 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, backup, 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, 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, 365. “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 LLC, and Longboat Advisors LLC, 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, MD, 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, 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, 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.