MCG Capital Provides $20 Million of Growth Capital to C7 Data Centers

MCG Capital Corporation

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.”