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March 13, 2017

CenturyLink data centre business gets a new name after $2.8bn buy out

CenturyLink's data centre portfolio is now known as Cyxtera Technologies following last years acquisition.

By Hannah Williams

The new owners of CenturyLink’s former data centre business have renamed the business Cyxtera Technologies.

The new owners, BC Partners, Medina Capital Advisors and LongView Asset Management bought the entire data centre portfolio for $2.8bn in November 2016, with the portfolio consisting of 57 facilities across Europe, North America, Asia and Australia.

This includes approximately 195 megawatts of power and 2.6 million square feet of raised floor capacity.

During the announcement of the acquisition in 2016, Justin Bateman, Managing partner, BC Partners said: “We are excited to be acquiring CenturyLink’s portfolio of data centre assets.

data centre facility“CenturyLink has built and maintained an impressive global footprint of colocation data centres that is unparalleled for a portfolio of assets of this size.

Read more: Centurylink funds Level 3 buyout with 57 data centres sell off

“Led by Manny Medina and his management team at Medina Capital, these data centres will become part of a new global secure infrastructure platform.”

According to Reuters, the new business has revealed plans to gather a leveraged loan of $1.275bn in order to tackle the US government’s plans to cut tax deductibility on interest payments.

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It has been confirmed that Citigroup will be covering the main loan, being the first company in the US to carry out this kind of deal in attempt to limit increased costs following tax deductions.

The plans of the government are likely to put companies who have benefited from subsiding debt interest payments in the past into difficulty.

The loan is expected to be used to cover the overall acquisition of the data centres, which will include a total of $815m as a first term loan, $310m for the second term and an additional $150m to cover credit facility and a net first leverage.

The second loan is to be led by JP Morgan, with well-known finance companies Barclays, HSBC, Citizens, Macquire and Credit Suisse also involved.

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