(WEB HOST INDUSTRY REVIEW) — AtlantaNAP (www.atlantanap.com), Global Net Access’ (www.gnax.net) Atlanta colocation facility, has raised $7.5 million in debt financing from RBC Bank, which will be used in place of a more expensive line of credit and expand operations, according to a report by the Atlanta Business Chronicle.
With the new credit line, AtlantaNAP now has sufficient capital to expand its operations.
The colocation provider will also replace its previous line of credit from Bank of America which was 25 percent more expensive, according to AtlantaNAP president Jeff Hinkle.
In addition to being less expensive, the RBC credit line did not require AtlantaNAP partners to personally guarantee the loan, said Hinkle.
As the economy continues to worsen, many companies are restructuring their financing as a precautionary measure.
Earlier this month the WHIR reported that data center developer Digital Realty Trust raised $260 million to temporarily repay its revolving credit loan it uses to acquire additional properties, and fund development and redevelopment opportunities.
Despite the recession, Hinkle said that AtlantaNAP is seeing an increase in demand from medium-sized businesses who cannot afford to invest millions of dollars in keeping IT infrastructure in-house.
Global Net Access currently owns and operates a 50,000-square-foot data center in the west end of Atlanta, a data center in Dallas, and says it is building one in an undisclosed west coast city.
The company recently expanded its Enterprise Data Center 2 by adding another 13,500 square feet of available space, as well as expanded its agreement with Emory University to provide real-time backup services for the university and hospital systems.
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