[UPDATE: May 18, 2023]
The Industry and Company
A global leader in data center colocation and interconnection services required a financing solution for mission critical data center hardware and software.
A large colocation player had a diverse global customer base, favorable industry dynamics and strong sponsor support. However, the company was highly levered due to high annual data center capex leading to negative historical free cash flows. The company had been recently downgraded to B3/CCC due to tight liquidity and increased leverage, resulting in limited access to capital markets.
Atalaya provided a lease financing of approximately $10 million, which provided additional access to capital to fund ongoing capex and maintain and grow the business.