Latisys has secure a new $200 million credit facility
Web hosting provider and data center operator Latisys announced on Thursday it has secure a new $200 million credit facility including a 6-year, $180 million institutional term loan and a 5-year $20 million revolving credit facility.
The announcement comes just over a year after Latisys secured a credit facility of $155 million credit facility in December 2011.
The credit facility, which was rated by Standard and Poor’s Rating Services and Moody’s Investors Service, was oversubscribed with commitments from several leading sector lenders and institutional investors.
This signals an overwhelming support for the company’s operational execution, accelerating growth and national IT infrastructure-as-a-service platform, according to the press release.
Over the past 4 years, Latisys has invested over $125 million to extend its colocation, hosting and cloud footprint to respond to increasing demand for IaaS and IT outsourcing.
Latisys also recently deployed a managed hosting and cloud platform and launched its unified service desk in 2012 that enabled the company to continue providing secure, scalable, high performance infrastructure outsourcing.
The availability of new capital in 2013 will be deployed across Latisys’ IaaS platform, which officially launched in November, to drive accelerating growth and customer acquisition, continued facility expansion to ensure the availability of high density capacity for current and future customers, technology platform enhancements to support cloud adoption and enable clients to improve their security and disaster recovery posture, and growing its personnel.
“Latisys’ growth strategy centers around ongoing strategic expansion of our IaaS platform and our ability to provide innovative right-sized, hybrid IT solutions that solve business problems,” said Doug Butler, chief financial officer for Latisys. “The new credit facility provides additional capital necessary to maintain technology leadership as well as additional support services required to respond to increased demand for higher margin managed hosting and cloud services.”
The oversubscribed $200,000,000 credit facility was arranged by RBC Capital Markets, TD Securities (USA) and SunTrust Robinson Humphrey, with each company actins as joint lead arrangers and bookrunners on the deal.
Meanwhile, the facility was funded by a group of over 20 leading financial institutions and institutional investors.
Latisys has continued to expand its data centers across the US, with recent developments in Denver (DEN2 ), Orange County, Northern Virginia (ASH1 DC5), and Chicago (CHI DC6).
In Southern California, Latisys recently announced an additional 12,000 square feet in its Irvine, CA data center, making Latisys the largest data center operator in Orange County. Latisys’ total data center platform now exceeds 343,000 square feet across seven data centers in four major markets.
Talk back: Are you currently a customer of Latisys? Do you think this latest credit facility will help drive growth for Latisys? Let us know in the comments section.
About Justin Lee
Justin Lee has been a staff analyst with theWHIR since 2004. He writes about a range of web hosting and IT-related issues facing the industry on the WHIR website, as well the print version of the WHIR magazine. Follow him on Twitter @Justin_theWHIR.
