Argo, Wafra, Macquarie Invest in Data Center Provider TierPoint

Gillian Tan (Bloomberg) -- TierPoint LLC, a provider of data centers and other technology services to clients including Hewlett Packard Enterprise Co. and the National Hockey League, is getting backing from a group led by Argo Infrastructure Partners, Wafra Inc., and Macquarie Group Ltd.’s principal investment arm.

Existing investors including RedBird Capital Partners LLC and Ontario Teachers’ Pension Plan are also participating in the $320 million preferred equity investment. Proceeds will be used to pay down a second-lien credit facility, repay a portion of the company’s revolving credit facility and help expand the business.

“This investment agreement was reached in what we all know is a very challenging environment,” TierPoint Chief Executive Officer Jerry Kent said in a statement. “That’s a testament to the strong performance TierPoint has already achieved and our prospects for continued growth.”

Bloomberg News reported last May that the St. Louis-based company was seeking an equity injection of $250 million to $500 million. In addition to operating more than 40 data centers across the U.S., TierPoint offers disaster-recovery, security and consulting services. Its other clients include the Bill & Melinda Gates Foundation, drugstore company Walgreens Boots Alliance Inc. and Pabst Brewing Co., according to the TierPoint website.

Related:Infrastructure Investors Get Hungry for Data Center Deals

Infrastructure is one of the few sectors that’s been keeping dealmakers busy amid the coronavirus pandemic, with firms dedicated to the sector continuing to bet on digital infrastructure, such as data centers, as well as waste management and electricity distribution.

TierPoint could “capitalize on the tailwinds supporting the data center industry,” Fawaz Al-Mubaraki, CEO of Wafra, said in the statement.