Cyxtera, which offers data center colocation and interconnection services, received $50 million in new financing from certain of its lenders holding over two-thirds of its outstanding term loan.
The company has entered into a Restructuring Support Agreement (RSA) with the lenders as it continues to operate its global platform of highly interconnected data centers. The company is undertaking a process to pursue a potential sale of the business or a significant investment from a new investor. If this 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.
Cyxtera today also shared key financial highlights for the quarter ended March 31, 2023, as follows:
- Total revenue increased by $14.3 million, or 7.8% year over year, to $196.7 million in the first quarter.
- Recurring revenue increased by $14.7 million, or 8.5% year over year, to $188.4 million in the first quarter.
- Core revenue increased by $18.1 million, or 10.9% year over year, to $184.0 million in the first quarter.
- Net Loss of $325.4 million in the quarter, including a non-cash Goodwill impairment charge of $278.2 million; Transaction Adjusted EBITDA1 increased by $4.7 million, or 8.0%, to $63.3 million in the first quarter.
“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.”
