(WEB HOST INDUSTRY REVIEW) -- Colocation provider CyrusOne (www.cyrusone.com), which describes itself as “the largest corporate colocation provider in Texas,” announced on Monday that it has secured $150 million in credit to fund the expansion of its data center operations.
The $150 million senior secured credit facility, according to the company’s announcement, is provided by a group of banks led by TD Securities, RBC Capital Markets, SunTrust Robinson Humphrey and SG Americas Securities.
CyrusOne says the facility refinanced its outstanding debt and substantially increased its available borrowing capacity.
“Our decision to seek expansion funding was a result of a solid pipeline of customer requirements in Houston, Dallas and Austin,” said David Ferdman, CyrusOne president and CEO, quoted in the press release. “With this new credit facility and a significant incremental equity commitment from ABRY Partners, we not only have significant resources to support and accelerate our growth to meet these requirements; but this also dramatically lowers our cost of capital.”
CyrusOne has been expanding its data center facilities throughout 2009, expanding its Dallas data center, building a new facility in Austin, and adding a third facility to its presence in Houston this year.
The company's business is focused in Texas. It offers an interactive tour of its data centers and asociated services on the CyrusOne website.
The subject of debt lending – particularly as it pertained to the financing of new data center space – was a subject of much discussion at the Tier 1 Research Hosting Transformation Summit in Las Vegas this year. And it was discussed in detail in an article “Debt Lending Returns,” which appeared in the October 2009 issue of WHIR magazine.
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This has been, for us, one of the most interesting, exciting and challenging build-ups to an issue of the magazine yet, Web Hosting's All Star Team. The balloting process was our first experiment with a kind of user participation we're planning to do a lot more with in the months to come. We had thousands of ballots submitted, with hundreds of write-in suggestions and a demonstration of user engagement that has us feeling super positive about the project.
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July 2009 - What am I Worth?
One of the interesting luxuries of working on a project like the printed WHIR magazine is that it allows us to play with things like our point of view from one issue to the next. In recent months we've been giving added attention to the kind of practical and applicable advice aimed at smaller hosts and resellers. This issue carries on with that point of view, asking, in our cover story, "what am I worth?" It's a complicated question without a clear-cut answer.
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May 2009 - The Blueprint for a Small Web Host
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