Ascent Corporation has announced it has closed on $107 million in debt financing from a lending group headed by Bank of America Merrill Lynch with participant banks Royal Bank of Scotland and Cole Taylor Bank, to fund the expansion of their multi-tenant development model Dynamic Data Center Suites in Chicago as well as new markets.
“We are excited to have secured this debt financing for the funding of our Ascent CH2 Data Center development in suburban Chicago, as well as new markets,” said Phil Horstmann, CEO of Ascent Corporation. “Our approach to purpose-built, multi-tenant data center developments and our data center operational experience attracted the lending community to us. The success of our business model will allow us to attract future debt and equity capital to help fund the accelerated growth of our business into new markets.”
Ascent announced private equity funding to advance the Ascent CH2 Data Center development in mid-2010 and by late 2010 signed its first tenant lease. The Ascent CH2 Data Center offers up to 54 MW of power for additional dedicated Dynamic Data Center Suites.
“Ascent’s superior data center product and proven track record as a data center developer, coupled with the credit quality of Ascents tenants, makes this a very strategic relationship for our bank group,” said Vincent P. Luongo, senior vice president, Bank of America Merrill Lynch.
Holliday Fenoglio Fowler, L.P. served as advisor to Ascent on the deal. Senior Managing Directors Riaz Cassum and Michael Kavanau and Managing Director Lauren O’Neil of the firm’s Boston and Chicago offices worked on the transaction.
The Dynamic Data Center Suite model is based on dedicated and completely autonomous data center suites constructed within a multi-tenant facility. The model features custom-tailored, flexible designs and operational services to match each tenant’s business and technical requirements. Suite sizes range from 10,000-250,000+ square feet, and customers have the option to fit-out and maintain autonomous Powered Suites themselves or lease space on a Turnkey Infrastructure Suite basis. Tenants can utilize Ascent’s data center expertise throughout the build-out phase and can elect to take advantage of Ascent’s fully managed maintenance service capabilities following commissioning.