(WEB HOST INDUSTRY REVIEW) — Colocation provider and data center operator Terremark Worldwide (www.terremark.com) announced on Tuesday it is planning to make a private offering of about $400 million in senior secured notes due in 2017.
Terremark says it will use the net proceeds from the offering to pay off the $254.2 million outstanding balance under its senior secured credit deal.
The company will also pay back $4 million on its senior subordinated convertible notes, which are due at the end of June.
It will use any remaining funds for working capital and other general corporate purposes, including acquisitions and capital investments to expand facilities.
Last month, the company announced that virtualization technology developer VMware will acquire 4 million shares of Terremark common stock, valued at $20 million.
