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The following content is from an older version of this website, and may not display correctly. US provider of data center services Latisys has secured $110m in new credit facility, capital the company plans to invest in data center expansion in a number of US markets, including Denver, Chicago, Ashburn, Virginia, and Irvine California.
The five-year credit facility consists of up to $85m in term debt and a $25m revolving credit. The investment was arranged by an eight-lender consortium led by RBC Capital Markets, TD Securities and Madison Capital Funding. Other lenders include Bank of America and GE Securities.
Latisys CFO Doug Butler said the fact that the new financing was underwritten by "leading financial institutions" testified to the company's profitability and growth prospects. "The new capital enables Latisys to continue to scale our datacenter facility operations and services as one of the nation's premier data center colocation and managed hosting providers."
The company announced its latest expansion in June, when it completed addition of 32,000 sq ft of raised floor and 5MW of power to its data center in the Chicago area.
Latisys entered the Ashburn market in March of this year by acquiring competing company Pryme Technologies and its 120,000 sq ft data center in the northern Virginia market.
The investment news is the latest sign of loosening capital markets for US data center providers that have been hungry for expansion capital to satisfy demand for data center space in all key US markets, where demand has been much higher than supply.
Savvis was one of the latest data center service providers to have announced a large fresh capital injection. Earlier this month, Savvis said it had secured more than $600m ÔÇô part term-loan and part revolving credit facility ÔÇô to support continued growth.
In June, wholesale data center provider Ascent raised $100m, which will partially finance construction of a large new data center in the Chicago area.
Prior to that, in May, provider of managed services Virtustream closed its first round of financing, securing investment of $40m ÔÇô also capital to be used for expansion of data center footprint.
In July, wholesale data center provider Digital Realty Trust closed a sale of stock, raising about $377m. This money, however, was used to finance Digital's acquisition of an existing five-property data center portfolio formerly managed by 365 Main. Some of the space acquired is undeveloped land.
The five-year credit facility consists of up to $85m in term debt and a $25m revolving credit. The investment was arranged by an eight-lender consortium led by RBC Capital Markets, TD Securities and Madison Capital Funding. Other lenders include Bank of America and GE Securities.
Latisys CFO Doug Butler said the fact that the new financing was underwritten by "leading financial institutions" testified to the company's profitability and growth prospects. "The new capital enables Latisys to continue to scale our datacenter facility operations and services as one of the nation's premier data center colocation and managed hosting providers."
The company announced its latest expansion in June, when it completed addition of 32,000 sq ft of raised floor and 5MW of power to its data center in the Chicago area.
Latisys entered the Ashburn market in March of this year by acquiring competing company Pryme Technologies and its 120,000 sq ft data center in the northern Virginia market.
The investment news is the latest sign of loosening capital markets for US data center providers that have been hungry for expansion capital to satisfy demand for data center space in all key US markets, where demand has been much higher than supply.
Savvis was one of the latest data center service providers to have announced a large fresh capital injection. Earlier this month, Savvis said it had secured more than $600m ÔÇô part term-loan and part revolving credit facility ÔÇô to support continued growth.
In June, wholesale data center provider Ascent raised $100m, which will partially finance construction of a large new data center in the Chicago area.
Prior to that, in May, provider of managed services Virtustream closed its first round of financing, securing investment of $40m ÔÇô also capital to be used for expansion of data center footprint.
In July, wholesale data center provider Digital Realty Trust closed a sale of stock, raising about $377m. This money, however, was used to finance Digital's acquisition of an existing five-property data center portfolio formerly managed by 365 Main. Some of the space acquired is undeveloped land.