DH Capital Announces Closing Of $320m Preferred Equity Raise For TierPoint
NEW YORK and BOULDER, Colo., April 15, 2020 (GLOBE NEWSWIRE) — DH Capital, LLC (“DH Capital”), an investment banking firm serving companies in the Internet Infrastructure, communications, and SaaS sectors, is pleased to announce it served as financial advisor to TierPoint, LLC (“TierPoint”) on its recently closed preferred equity capital raise. The $320 million investment was led by a consortium of new investors: Argo Infrastructure Partners, Wafra, and Macquarie Capital Principal Finance, with existing TierPoint investors Cequel III, Ontario Teachers’ Pension Plan, RedBird Capital Partners, The Stephens Group, and Thompson Street Capital Partners also participating in the deal. Net proceeds, after transaction fees and expenses, will be used to repay TierPoint’s second lien credit facility in full, reduce the balance outstanding under the company’s revolving credit facility, and provide growth capital to fuel TierPoint’s continued momentum.
Howard Loewenberg, Partner at DH Capital commented “The completion of this capital raise in a very challenging environment is a testament to Jerry Kent and the rest of the TierPoint executive management team with respect to the durability and growth prospects of the quality business they have built. TierPoint is the premier national provider of hybrid IT infrastructure solutions to medium and large enterprises and is now well positioned to fund its next stage of growth and expand upon its existing leadership position.”
Jerry Kent, CEO of TierPoint commented “The tenacity of our financial advisors was key to the success of this transaction. They were instrumental in finding the right group of investors who share our vision. In addition, our advisors’ knowledge of our business highlighted our growth and the bright prospects for accelerating that growth.” The DH Capital team involved in this transaction included Loewenberg, Peter Hopper, Mark Thorsheim, Nick Cipiti, Emily Coutts and Andrew Vrana.
DH Capital has long served as a trusted advisor and maintains the largest dedicated team of professionals covering the Internet infrastructure, communications, and SaaS sectors. In the past three years, DH Capital has advised data center/cloud communications companies on 25 transactions with combined transaction value of approximately $15 billion.
Meeting clients where they are on their journey to IT transformation, TierPoint (tierpoint.com) is a leading provider of secure, connected data center and cloud solutions at the edge of the internet. The company has one of the largest customer bases in the industry, with thousands of clients ranging from the public to private sectors, from small businesses to Fortune 500 enterprises. TierPoint also has one of the largest and most geographically diversified footprints in the nation, with over 40 world-class data centers in 20 U.S. markets and 8 multi-tenant cloud pods, connected by a coast-to-coast network. Led by a proven management team, TierPoint’s highly experienced IT professionals offer a comprehensive solution portfolio of private, multitenant, managed hyperscale, and hybrid cloud, plus colocation, disaster recovery, security, and other managed IT services.
About DH Capital
DH Capital is a private investment banking partnership serving companies in the Internet infrastructure, software & IT services and communications sectors. Headquartered in New York City with offices in Boulder, Colorado, the firm’s principals have extensive experience and proven abilities in capital formation, finance, research, business development, and operations. DH Capital provides a full range of advisory services including mergers and acquisitions, private capital placements, financial restructuring, and operational consulting. Since its formation in 2001, DH Capital has completed 180 transactions and private capital placements totaling more than $29 billion in value.