TierPoint Closes $320 Million in Equity from Group of Investors

TierPoint Closes $320 Million in Equity from Group of InvestorsTierPoint has officially closed previously announced transactions, resulting in preferred equity investments totaling $320 million. This $320 million of preferred equity was led by a consortium of new investors including Argo Infrastructure Partners, Wafra, and Macquarie Captial Principal Finance. Existing investors such as Cequel III, Ontario Teacher’s Pension Plan, RedBird Capital Partners, The Stephens Group, and Thompson Street Capital Partners also participated.

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This past year, TierPoint released Cloud to Cloud Recovery powered by Nutanix. This new service provides a cost-effective method to leverage Nutanix technologies for replication and disaster recovery orchestration with a TierPoint-managed Hosted Private Cloud in the recovery environment. The provider’s Disaster Recovery as a Service combines features such as replication, cloud, and virtualization technologies, delivering a comprehensive solution that provides the capabilities needed to ensure critical data and applications are safe and secure. The vendor also owns over 40 data centers within 20 markets and 8 multi-tenant cloud pods, all connected via a coast-to-coast network. 

Net of transaction fees and expenses, equity proceeds will be used to repay TierPoint’s second lien credit facility in full, provide growth capital to fuel TierPoint’s continued momentum, and reduce the balance outstanding under the provider’s revolving credit facility. Additionally, Citi and DH Capital served as financial advisors to TierPoint in the equity transactions and Goldman Sachs advised RedBird Capital. 

Regarding this agreement, TierPoint’s Chairman and CEO, Jerry Kent previously said, “this investment agreement was reached in what we all know is a very challenging environment. That’s a testament to the strong performance TierPoint has already achieved and our prospects for continued growth. Our business has tremendous momentum. In the last two years, we’ve increased sales bookings by 26 percent and the first quarter of 2020 will be another outstanding growth period. 

Our team of world-class technology professionals are diligently focused on providing exceptional client service, with a compelling hybrid IT strategy and comprehensive suite of market-leading infrastructure solutions that are in high demand. We’re also in a unique position to help our customers navigate the current crisis. We have a very strong balance sheet, with significantly reduced leverage and improved liquidity, an infusion of growth capital, and we believe, a long runway of growth ahead of us, as we continue to invest in our services, infrastructure, and people.”

Learn more about TierPoint.

Tess Hanna
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