(WEB HOST INDUSTRY REVIEW) — Colocation provider Switch and Data (www.switchanddata.com) announced on Tuesday the company has obtained $100 million of debt financing from a syndicate of banks arranged by RBC Capital Markets.
The financing will accelerate Switch and Data’s capacity expansion program including its previously announced site in Atlanta, and fund expansion in other high-growth markets
“Improved bookings combined with increasing customer demand afford us the opportunity to accelerate our investments for growth,” says Keith Olsen, CEO and president of Switch and Data. “Network-centric companies are rolling out multiple new service offerings which continue to demand more infrastructure and interconnection capacities across more local, regional and global markets. Our company’s broad footprint of data centers and interconnection services play a crucial role in supporting the growth of these customers’ network based services.”
The $100 million is in the form of delayed draw term loans, governed by an amendment to the company’s existing credit agreement, allowing Switch and Data to draw down the loans over the next 12months.
Earlier this year, the company borrowed $22.5 million through its existing credit line of credit with RBC to fund its expansion in the New York metro area, which brought its total borrowings to $142.5 million.
The company will have to repay the principal amount starting in 2011 through 2014, with RBC acting as administrative agent and collateral agent, and RBC Capital Markets acted as lead arranger and bookrunner for the new debt financing.
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