The parent company of TierPoint, a national enterprise data center company and provider of secure, connected IT platform solutions, closed a $250 million term loan, a portion of which is a delayed draw term loan. Upsized due to strong investor interest, this facility complements TierPoint’s asset-backed securitization (ABS) and variable funding notes (VFN) program.
Net proceeds will be used to fund a portion of data center expansions and other growth-related capital expenditures; buy out leases at selected data centers; refresh capital drawn under the VFN; and redeem in full the Series B preferred equity.
“Our ability to continue successfully accessing the capital markets is a testament to the work of our world-class employees and the sustained growth that our company is delivering,” Mary Meduski, president and chief financial officer of TierPoint, said. “That growth is fueled by robust market demand for our IT infrastructure solutions, including our market-leading colocation services for both enterprise and artificial intelligence workloads. This term loan positions us to continue capitalizing on that demand and serving our customers with excellence.”
“There is a clear market signal in the sustained improvement in financing terms and pricing that the company has attracted over time, now coupled with a flexible and sophisticated capital construct that sets TierPoint on a path to consolidate its unique advantages,” Jason Zibarras, board director at TierPoint and managing partner of Argo Infrastructure Partners, TierPoint’s majority shareholder, said.
“This partnership with Apterra and our ability to attract a new group of lenders is key to supporting the next stage of TierPoint’s growth during this period of accelerating market demand for TierPoint’s infrastructure and capabilities,” Brice Soucy, Argo director at TierPoint, said.
“We are pleased to have led this term loan,” Michael Pantelogianis and Ralph Cho, co-CEOs of Apterra, said. “The impressive investor demand reflects TierPoint’s strong credit profile and robust business model.”
Apterra Infrastructure Capital acted as lead arranger, sole bookrunner and administrative agent for the transaction. CSC Delaware Trust Company is the collateral agent and depositary bank. Bank Street Group and Seyfarth Shaw served as advisor and counsel, respectively, to TierPoint’s parent company. Milbank served as counsel to Apterra. Perkins Coie served as counsel to CSC Delaware Trust.
