ARLINGTON, Va.--(BUSINESS WIRE)-- MCG Capital Corporation (Nasdaq: MCGC) (“MCG”) today announced the closing of $20 million investment in C7 Data Centers, Inc. (“C7”). MCG’s investment consists of a unitranche credit facility with a delayed draw term loan to meet future capital expenditures, a revolving credit as well as an equity co-investment. Solutions Capital I, L.P., MCG’s affiliate licensed by the Small Business Administration, funded a portion of the credit facility.
C7 is a leading provider of advanced IT and data center outsourcing services. The new funding is designed to permit C7 to expand its data center footprint and operations to meet the growth demands of existing and prospective clients. C7 is a portfolio investment of Signal Peak Ventures.
“We are excited to have led the debt portion of C7’s new capital funding which we tailored to allow C7 to keep pace with the demand for its data centers and services," stated Bob Marcotte, Executive Vice President and Managing Director of MCG Capital Corporation. “We believe that the IT experience and service commitment of the C7 team have established the company as a leader in its ability to deliver on the critical data center production demands of discriminating enterprise customers.”
In addition to focusing on the continued development of its colocation services in all of its data centers, C7 provides customers with proven disaster recovery, data backup and cloud/hybrid cloud solutions.
Of the funding, Wes Swenson, C7’s CEO, remarked, “It’s important to work with institutions like MCG who understand the colocation market and evolving market demands during this stage of the Company’s growth. Their support and committed funding provide C7 with the capital to continue meet the dynamic market demand for its colocation services including the construction of additional data centers we have planned locally and regionally.”
About MCG Capital Corporation
MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital. For more information, please visit www.mcgcapital.com.
About C7 Data Centers
C7 Data Centers is a privately held Utah company focused on providing high-value data center outsourcing, cloud, dedicated server and disaster recovery solutions to local, national and international businesses. Companies select C7 for colocation and business continuance and because of Utah’s disaster free record, low operational costs, and easily accessible location in the United States. All C7 data centers are SSAE 16 Type 2 audited. The company is committed to research in power and cooling efficiencies and to the adaptation of leading edge data center technologies. For more information about C7 Data Centers, call 801-822-5300 or visit www.c7dc.com.
About Signal Peak Ventures
Signal Peak Ventures is an early-stage venture capital firm with more than $450 million of committed capital under management. The fund targets information technology and life sciences companies and looks for companies with the potential to transform their markets and create lasting value. Signal Peak's primary areas of focus include enterprise software, networking and communications, security software, Internet, mobile computing, drug delivery, diagnostics and medical devices -- and the firm has deep experience in all of these markets, having founded or served as senior officers and board members in more than 100 companies. Visit signalpeakvc.com for more information.
Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in MCG’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by MCG from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. MCG is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Keith Kennedy, 703-247-7513
Source: MCG Capital Corporation