(Updates with acquisition details in third paragraph.)
Sept. 6 (Bloomberg) -- Telx Group Inc., the operator of network-neutral interconnection facilities, is seeking $340 million of loans to finance its leveraged buyout by Abry Partners and Berkshire Partners LLC, according to a person with knowledge of the transaction.
Morgan Stanley and Toronto-Dominion Bank are arranging the deal, which includes a $290 million term loan B and a $50 million revolving line of credit, said the person, who declined to be identified because the terms are private. The banks will host a lender meeting on Sept. 8 at 10:30 a.m. in New York.
Abry and Berkshire are purchasing New York-based Telx for an undisclosed amount from GI Partners, according to an Aug. 8 company statement. Lawrence Hamelsky, managing director at Berkshire, the Boston-based private-equity firm, didn’t respond to an e-mail seeking comment.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t. A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual fund and hedge funds.
--Editors: Chapin Wright, Sharon L. Lynch
To contact the reporter on this story: Michael Amato in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Chapin Wright at email@example.com