CapitalSource Agents/Arranges $75MM Facility for Cervalis
CapitalSource said it led the structuring of a $75 million credit facility for Cervalis, a provider of IT infrastructure solutions including: cloud computing, colocation, managed hosting, business continuity and rapid recovery. CapitalSource said it served as administrative agent and lead arranger for the facility.
The credit facility will be used to fund the development of a new, 170,000 square foot, state-of-the-art data center and business continuity facility in Connecticut, and to refinance existing indebtedness. The loan facility includes a $25 million revolver, a $30.5 million term loan, and a $19.5 million delayed draw term loan.
Cervalis addresses the growing demand for reliable, highly available primary and back-up information technology infrastructure services, said Ryan Golding, managing director, Leveraged Finance at CapitalSource. “Cervalis is led by the top notch management team that founded the firm in 2000. Since its inception, the company has experienced strong consistent growth and has done a great deal of work to meet the demands of its more than 200 current customers. We are pleased to play a role in their continued success.”
“We have worked with CapitalSource since 2009, and it’s important for us to have knowledgeable, experienced lenders who understand our space,” commented Michael Boccardi, CEO of Cervalis. “This new credit facility will enable us to continue building our business and service offering for our clients. We appreciate the ongoing support from CapitalSource and the ease of execution we can depend on when seeking new forms of financing.”