(WEB HOST INDUSTRY REVIEW) — Colocation and managed hosting firm Latisys (www.latisys.com) announced on Monday that it had refinanced its existing $65 million senior credit facility with a new $110 million facility through a consortium of eight lenders, led by RBC Capital Markets, TD Securities and Madison Capital Funding.
According to the announcement, the company intends to use the incremental funding to continue expansion and growth across its key U.S. markets, including Denver, Irvine, Chicago and Ashburn, Virginia. Latisys has already made several announcements related to the expansion of its facilities this year, most recently its Chicago facility in July.
Latisys says the new five-year, $110 million credit facility includes up to $85 million in term debt and a $25 million revolving credit facility. The company says the refinancing “significantly expanded overall liquidity and reduce effective interest rates.”
“The fact that our financing was heavily oversubscribed and includes the leading financial institutions for our sector is a testament to Latisys’ strong national platform of facilities in Irvine, Denver, Chicago and Ashburn, as well as the combined businesses’ profitability and prospects for continued growth,” says Doug Butler, chief financial officer for Latisys, quoted in the press release. “The new capital enables Latisys to continue to scale our datacenter facility operations and services as one of the nation’s premier data center colocation and managed hosting providers.”
In the announcement, Latisys says the expansions to its footprint this year have given the company operations in each time zone in the US, as well as gateways into Asia Pacific and Europe.
About Liam Eagle
Liam Eagle has worked as a contributor to the Web Host Industry Review since its inception in 2000, and as editor since 2003. He has been editor of the WHIR's print magazine since its launch. His daily involvement in the gathering and reporting of Web hosting news and his regular interaction with Web hosting leaders gives him an uncommonly broad appreciation of the issues and tends facing the business. Through his WHIR blog, Liam spots Web hosting trends and offers opinions on the industry-wide impacts of major developments and the motivation behind big announcements. Follow him on Twitter @liameagle
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