CYXT - Cyxtera Technologies downgraded at Cowen amid elevated refinancing risk

2023-03-20 13:37:03 ET

• TD Cowen downgraded Cyxtera Technologies ( NASDAQ: CYXT ) to Market Perform from Outperform, lowered price target to $1 from $3 led by refinancing risk with uncertain outcome.
• This is amid the upcoming 2024 debt maturities that the rating agency believes that CYXT's ability to refinance is limited by capital markets conditions and elevated leverage.
• Also, its current capital structure limits its ability to raise incremental capital required to fund capex to support long term growth.
• Last week, the company reported its full earnings with revenue growth of 8%; in 2022, the company delivered strong core revenue growth of 7.5%, drove stabilized occupancy increases of 350 basis points, and continued to strategically expand its footprint.
• In the earnings, the company also announced that, on Mar. 14, 2023, it entered into an agreement with all of its revolving lenders to modify certain terms of its $120.1M revolving credit facility, including an extension of the maturity date under such facility from Nov. 1, 2023 to Apr. 2, 2024.
• Cyxtera is actively attempting to address its revolving credit facility and long-term debt that mature in April 2024 and May 2024, respectively.

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