Cyxtera, a global leader in data center colocation and interconnection services, today announced that it has received $50 million in new financing from certain of its lenders, holding over two-thirds of its outstanding term loan (the “Lenders”), to support ongoing business operations. In connection with the new financing, Cyxtera has entered into a Restructuring Support Agreement (“RSA”) with the Lenders to strengthen the Company’s financial position and facilitate the business’s long-term success.
Cyxtera is continuing to operate its unique global platform of highly interconnected data centers with an unwavering focus on providing high-quality services that help its customers around the world transform and scale their businesses.
“We have strong momentum in our business, and demand for our global data center platform remains high,” said Nelson Fonseca, Cyxtera’s Chief Executive Officer. “With the support of our Lenders, we are taking steps to strengthen our financial position and ensure that our business is best positioned for the long term. We are confident in our ability to continue growing our business and creating value for the customers and communities we serve as we work to implement the transactions contemplated by the agreement.”
Mr. Fonseca added, “We thank our customers and partners for their continued support, and we are grateful to our employees for their hard work and commitment to Cyxtera. We look forward to continuing to provide innovative, cloud-like data center services and enabling our customers to meet their evolving business needs.”
Additional Information Regarding the RSA
The terms of the RSA contemplate the Company undertaking a process to pursue a potential sale of the business or a significant investment from a new investor. In connection with this process, the Lenders have agreed to offer long-term financing for potential investors to address existing near-term maturities.
To the extent the process does not result in an acceptable transaction with a third party, as defined by the RSA, the Company would implement a comprehensive financial restructuring and transition majority ownership of the business to the Lenders through an expedited, voluntary court-supervised process under Chapter 11 of the U.S. Bankruptcy Code.
In all scenarios being contemplated, Cyxtera will continue operating and serving customers via its global data center platform with innovative services and the highest levels of support. Additionally, regardless of the path forward, employees will continue receiving their pay and benefits without interruption. The Company will also continue evaluating its data center footprint, consistent with its commitment to optimizing operations.
About Cyxtera
Cyxtera is a global leader in colocation and interconnection services, with a footprint of more than 60 data centers in over 30 markets. With IT infrastructure becoming increasingly hybrid, complex, and distributed, Cyxtera continues to expand its portfolio beyond space and power to deliver more cloud-like and flexible infrastructure solutions across its global data center platform and robust partner ecosystem. Today, Cyxtera provides more than 2,300 enterprise and government customers with the technology solutions they need to scale faster, achieve financial goals, and gain a competitive advantage.