(WEB HOST INDUSTRY REVIEW) — Managed hosting provider Savvis (www.savvis.net) announced on Friday it has secured a raise of about $625 million, consisting of a $550 million term loan and a $75 million revolving credit facility.
Savvis says it will use the proceeds from this to repay its debt, including repurchase of about $345 million in outstanding securities and a repayment of $150 million under its revolving credit loan.
Additionally, the company says it will use any remaining proceeds for “general corporate purposes.”
The Bank of America-Merrill Lynch and Morgan Stanley Senior Funding will lead the credit arrangement, while Credit Suisse Securities and SunTrust Robinson Humphrey will act as additional arrangers and book-runners.
Last month, Savvis completed the acquisition of managed IT and colocation provider Fusepoint, adding presences in the Canadian markets of Toronto, Vancouver and Montreal.
