(WEB HOST INDUSTRY REVIEW) — Hosting services and IT infrastructure provider iWeb Group Inc. (www.iweb.com) has completed a new $3 million financing agreement with the Bank of Montreal (www.bmo.com), one of its major financial partners, in order to provision its new Montreal data center.
iWeb’s chief financial officer Philip Tousignant said that the increased facility will be used to finance the initial 3,000 servers provisioned in the company’s new, 31,000-square-foot data center, first announced in January. Once fully outfitted, iWeb’s fourth Montreal data center will have an estimated capacity of 20,000 dedicated servers, bringing the company’s total dedicated server capacity to nearly 35,000 servers.
Cyrille Mertes, iWeb’s chief technology officer, noted at the time that the facility would be built with automation in mind. “[A]utomation is one of the company’s priority in 2010,” Mertes said. “Because we are essentially building a new center, we can design it according to current standards with no restrictions due to previous technologies already installed.”
Specifically, the $3 million credit facility is available in term loans, bearing interest of 4.25 percent, payable in monthly instalments over 42 months. The agreement also includes a 0.5 percent reduction in the interest rate on the outstanding amount of the previous facilities — including the most recent financing deal with Goldman Sachs worth $3 million to complete the construction of the company’s latest Montreal data center. Finally, an additional facility for foreign exchange contracts is also included in this agreement.
Founded in 1996 in Montreal, iWeb is now publicly listed on the Toronto Stock Exchange Venture Exchange, and Profit Magazine has named it one of Canada’s 100 fastest growing companies.
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