DBSi Raises $35 Million for Pennsylvania Project

Managed hosting provider Data Based Systems International, Inc. (DBSi) has lined up $35 million to complete the first phase of the company's long-planned data center in eastern Pennsylvania, the company said this week. DBSi is developing the 220,000 square foot TekPark facility in Breinigsville, Pa., which will include more than 100,000 square feet of raised-floor data center space.

Investment bank DH Capital, LLC helped DBSi arrange $35 million in financing, consisting of a senior credit facility from PNC Financial Services and a subordinated term loan from MCG Capital Corporation. The proceeds will be used to refinance DBSi's existing debt and complete the first phase of its TekPark data center, which is approximately 50 percent leased. DBSi owns and operates existing enterprise-class data centers in Valley Forge and Bethlehem, PA.

"This new funding will help us achieve another major milestone for DBSi and our clients," said William Bachenberg, founder and CEO of DBSi.  "TekPark will serve the critical IT needs of enterprises with DBSi's state-of-the-art data center design.  We are very pleased with the DH Capital team and their execution on this important transaction."

DBSi is based in Bethlehem, Pa. and provides managed hosting and disaster recovery services to clients in the healthcare and financial industries. It solutions encompass high speed wide area network connectivity, managed storage, comprehensive monitoring, data backup and restoration, security management, and change control.

The company has been working on TekPark since 2008, when it announced the project aspart of the Wall Street West partnership working to promote northeastern Pennsylvania as a destination for backup data centers for Wall Street firms. DBSi officials cited the work of DH Capital in helping line up the funding to complete the first phase.

"DH Capital did a great job throughout this process, creating a variety of potential financing solutions and helping to facilitate a timely closing," said Tim O'Keefe, CFO of DBSi.  "Our business has experienced explosive growth over the last few years and DH Capital was instrumental in obtaining very attractive financing."

DBSi is based in Bethlehem, Pa. and provides managed hosting and disaster recovery services to clients in the healthcare and financial industries. It solutions encompass high speed wide area network connectivity, managed storage, comprehensive monitoring, data backup and restoration, security management, and change control.