US colo company TierPoint has secured new financing.

The firm this week said its parent­ company had closed a $250 million term loan, a portion of which is a delayed draw term loan.

Upsized due to “strong investor interest,” this facility complements TierPoint’s asset-backed securitization (ABS) and variable funding notes (VFN) program.

Net proceeds will be used to fund a portion of data center expansions and other growth-related capital expenditures; buy out leases at selected data centers; refresh capital drawn under the VFN; and redeem in full the Series B preferred equity.

“Our ability to continue successfully accessing the capital markets is a testament to the work of our world-class employees and the sustained growth that our company is delivering,” said TierPoint president and CFO, Mary Meduski. “That growth is fueled by robust market demand for our IT infrastructure solutions, including our market-leading colocation services for both enterprise and artificial intelligence workloads. This term loan positions us to continue capitalizing on that demand and serving our customers with excellence.”

Apterra Infrastructure Capital acted as lead arranger, sole bookrunner, and administrative agent for the transaction.

Apterra co-CEOs, Michael Pantelogianis and Ralph Cho, said: “We are pleased to have led this term loan. The impressive investor demand reflects TierPoint’s strong credit profile and robust business model.”

CSC Delaware Trust Company is the collateral agent and depositary bank. Bank Street Group LLC and Seyfarth Shaw LLP served as advisor and counsel, respectively, to TierPoint’s parent company. Milbank LLP served as counsel to Apterra. Perkins Coie served as counsel to CSC Delaware Trust.

“There is a clear market signal in the sustained improvement in financing terms and pricing that the company has attracted over time, now coupled with a flexible and sophisticated capital construct that sets TierPoint on a path to consolidate its unique advantages,” added Jason Zibarras, TierPoint board director and managing partner of Argo Infrastructure Partners, TierPoint’s majority shareholder.

Founded in 2010, Argo-owned TierPoint operates around 40 data centers across 18 US markets, mostly in second-tier cities. The company has expanded through a mixture of new builds and acquisitions, including Colo4, Perimeter Technology Center, Adhost Internet Advertising, Baltimore Technology Park, Philadelphia Technology Park, Xand, CxP Data Centers, Altered Scale, Windstream Hosted Solutions, and Cosentry.

The company recently closed $500 million in asset-backed securities financing. The company has issued a total of $1.81 billion in asset-backed securities (ABS) on a portfolio of 33 data centers to to-date. It made two prior transactions in 2023 and 2024.