Telx announced it has secured USD$43.5 million in new financing from CIT Communications, Media & Entertainment and RBC Capital Markets, replacing its former term loan.

The money will be used mainly to invest in existing markets with possible future expansion also under consideration. Terms of the transaction were not disclosed.

The investors cited the strength of the data center market as a whole as a factor in their decision to finance the company.

CIT Communications, Media & Entertainment arranged financing from RBC Capital Markets based on Telx's strong, sustained growth; the strength of Telx's business model and customer base; and the data center market as a whole.

Telx said its business plan was fully funded under its former financing and this new deal provides significant opportunities "to enhance capabilities and explore new technologies that will expand the services that Telx is able to offer its customers."

RBC Capital Markets is a new lending partner, CIT has been a financing partner since 2007.

"We were pleased to arrange this financing for Telx, which has experienced significant growth over the past four years," said Joseph E. Junda, Senior Director of CIT Communications, Media & Entertainment. "This transaction represents our continued support for companies in the growing telecommunications sector."

Telx plans to use the additional funding to pursue continued expansion in existing cities to meet ongoing customer demand. When appropriate, the company will also give consideration to entrance into new markets as needed. Telx continued its strong growth by achieving 39 percent revenue growth in Q1'09, compared to the same period last year.

"Despite a challenging economy, Telx continues to experience solid revenue growth across multiple market verticals," said Chris Downie, President and Chief Financial Officer for Telx. "The company's business model has proven itself not only viable, but strong, and we expect to continue to deliver the same positive results in the coming years based on industry demand for colocation and interconnection services in our facilities. We're pleased to have CIT and RBC, who each has an in-depth knowledge of our industry, as our financial partners and appreciate their support for our continued business endeavors."

See DCDtv for interview with Eric Shapiro, CEO of Telx