(WEB HOST INDUSTRY REVIEW) — Data center operator Terremark Worldwide (www.terremark.com) announced on Wednesday it has completed its previously announced private placement of $420 million of its 12 percent senior secured notes.
First announced earlier this month, the offering is due in 2017 and issued at 95.134 percent.
Terremark used part of the net proceeds from the offering to completely pay off its outstanding credit balance of $254.2 million.
The company says it will also use part of the net proceeds to repay $4.0 million of its 0.5 percent senior subordinated convertible notes, due June 30, 2009.
It will then use any remaining proceeds for working capital and other general corporate purposes to help grow its business, which may include investments toward building facilities and acquiring complementary businesses.
The notes and guarantees will be secured by first priority liens on all of the assets of Terremark and its domestic subsidiaries.
Last month, virtualization technology developer VMware will acquire 4 million shares of Terremark common stock, valued at $20 million.
