The Floridant - Cyxtera Takes Next Step to Implement Restructuring Support Agreement

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~ Cyxtera, a global leader in data center colocation and interconnection services, has announced that it has initiated a pre-arranged court-supervised process under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. The company is expecting to use this process to strengthen its financial position, meaningfully deleverage its balance sheet and facilitate long-term success.

Nelson Fonseca, Cyxtera's Chief Executive Officer, said "We have thoroughly evaluated options to enhance value for the Company and our stakeholders. Together with our Lenders, we determined that initiating this process is the best path forward for Cyxtera and our stakeholders as we pursue new opportunities for growth. We appreciate the significant support from our Lenders, which will enable us to move through this process as quickly as possible. We are confident these steps will enable us to position our business for the long term as we continue serving our customers with innovative services and the highest levels of support."

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Mr. Fonseca further added that "Our recent business momentum and the high demand for our global data center platform are a testament to the hard work and commitment of our team, as well as to the continued support of our customers and business partners. We look forward to emerging from this process as a stronger organization with additional financial flexibility to drive Cyxtera's next phase of growth."

Cyxtera has received a commitment for $200 million in debtor-in-possession financing from certain of its term lenders which is convertible into an exit facility upon emergence from court-supervised process. This new financing is expected to provide sufficient liquidity to support Cyxtera during this process and beyond. The company is also continuing to pursue potential sale of business or significant investment from a new investor.

The Company has filed a number of customary motions with the Court seeking authorization to support its operations including payment of employee wages, salaries and benefits without interruption which it expects will be approved shortly. It also intends to pay vendors and suppliers in full for goods and services provided on or after filing date while evaluating its data center footprint consistent with its commitment towards optimizing operations.

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The subsidiaries in Germany, Singapore and United Kingdom are not included in court-supervised process while customers continue having access to their Cyxtera data center sites and equipment as usual without any interruption in service quality or availability.

Kirkland & Ellis LLP is serving as legal counsel while Guggenheim Securities LLC is acting as financial advisor with AlixPartners LLP serving as restructuring advisor during this period. Additional information regarding court-supervised process can be found at www.CyxteraRestructuring.com while filings related proceedings can be accessed at www.kccllc.net/cyxtera or by calling KCC toll free at (877) 726-6510 or (424) 236-7250 outside US/Canada or emailing KCC at cyxterainfo@kccllc.com .

Cyxtera provides more than 2,300 enterprise and government customers with technology solutions they need to scale faster, achieve financial goals, gain competitive advantage through its portfolio beyond space & power delivering cloud like flexible infrastructure solutions across global data center platform & robust partner ecosystem . For more information visit www . cyxtera . com

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