Mr. Nelson Fonseca of Cyxtera reports

CYXTERA ENTERS ASSET PURCHASE AGREEMENT WITH BROOKFIELD

Cyxtera has entered into an asset purchase agreement (APA) under which Brookfield Infrastructure Partners LP and its institutional partners (collectively, Brookfield), will acquire substantially all of Cyxtera's assets for $775-million.

In connection with the APA and the court-supervised process, Brookfield will purchase from several landlords the real estate at which seven of Cyxtera's United States data centres are located. These transactions will allow Cyxtera to increase existing facility ownership, secure expansion opportunities in support of robust customer demand and strengthen its data centre platform by giving Cyxtera more control over its cost structure.

"We are pleased to reach this agreement with Brookfield, which represents a favourable path forward for our customers, partners and employees," said Nelson Fonseca, Cyxtera's chief executive officer. "Throughout our restructuring process, our business has continued to perform well, a testament to our customers' confidence in our team and our innovative data centre platform. This agreement and the changes to the data centre portfolio, most importantly our increased facility ownership, will enable us to build on our business momentum and better position Cyxtera for the future."

Among the transactions made in connection with the APA is a comprehensive agreement with Digital Realty Trust Inc. and Digital Core REIT for Brookfield to acquire the real estate supporting several of Cyxtera's U.S. data centres.

Separately, Cyxtera has entered into an agreement with its landlord, Digital Realty, to amend the terms of its current leases at three U.S. sites and three international sites, to allow Cyxtera to exit those sites in 2024 while providing a seamless transition for customers.

Lastly, Cyxtera has signed an agreement to sell its business in its Montreal and Vancouver data centres to Cologix.

Mr. Fonseca added: "With Brookfield's deep global infrastructure expertise, experienced team and demonstrated track record, we will move ahead with a partner that recognizes the strength of our business, and will provide the guidance and resources to drive our next phase of growth. We remain firmly committed to making this transition as seamless as possible for all our stakeholders, and we look forward to continuing to serve our customers with the innovative services and high levels of support they have come to expect from Cyxtera."

The full terms of the APA have been filed with the U.S. Bankruptcy Court for the district of New Jersey. The hearing to approve the company's Chapter 11 plan and transaction with Brookfield is scheduled for Nov. 16, 2023. In addition to court approval, the APA is subject to regulatory approval and customary closing conditions. The transaction with Brookfield is expected to close in the first quarter of 2024.

Additional information

Additional information regarding the company's court-supervised process is available at the Cyxtera restructuring website. Court filings and other information related to the proceedings are available on a separate website administrated by the company's claims agent, KCC, or by calling KCC toll-free at 877-726-6510, or 424-236-7250 for calls originating outside of the U.S. or Canada, or by e-mailing KCC at cyxterainfo@kccllc.com.

Kirkland & Ellis LLP is serving as legal counsel to Cyxtera, Guggenheim Securities LLC is serving as financial adviser, and AlixPartners LLP is serving as restructuring adviser. Moelis & Co. is serving as exclusive financial adviser to Brookfield on the acquisition of Cyxtera. Wells Fargo and TD Securities are serving as joint financial advisers to Brookfield on the acquisition of the real estate underlying seven Cyxtera data centres and the pro forma combined entity, and are providing committed debt financing for the broader transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as Brookfield's legal counsel.

About Cyxtera

Cyxtera is a global leader in co-location, interconnection services and digital infrastructure. With IT (information technology) infrastructure becoming increasingly hybrid, complex and distributed, Cyxtera continues to expand its portfolio beyond space and power to deliver more cloud-like and flexible infrastructure solutions across its global data centre platform and robust partner ecosystem. Today, Cyxtera provides more than 2,300 enterprise and government customers with the technology solutions they need to scale faster, achieve financial goals and gain a competitive advantage.

Brookfield Infrastructure

Brookfield Asset Management operates Brookfield Infrastructure Partners, a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, mid-stream and data sectors across North and South America, Asia Pacific, and Europe.

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