Cyxtera Technologies to launch new credit facility on Tuesday

By Sara Rosenberg

New York, Feb. 27 – Cyxtera Technologies Inc. is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch a new credit facility, according to a market source.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc. and Citizens are the leads on the deal.

Proceeds will be used to help fund the acquisition of 57 data centers from CenturyLink Inc. by a joint venture being formed by BC Partners and Medina Capital, and combination of the data centers with Medina Capital’s security and data analytics portfolio.

The CenturyLink data centers are being purchased for $2.15 billion in cash, subject to offsets for capital lease obligations and various working capital and other adjustments.

Also, CenturyLink will receive a minority stake to be valued at $150 million in the consortium’s newly formed global secure infrastructure company.

Along with BC Partners and Medina Capital, the consortium includes Longview Asset Management.

The new joint venture also reached an agreement to acquire Easy Solutions, a security vendor focused on the comprehensive detection and prevention of electronic fraud across all devices, channels and clouds.

Closing on the data centers acquisition is expected this quarter, subject to regulatory approvals and other customary conditions.

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