Reverse Stock Split for Terremark

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Terremark, the Miami-based operator of the NAP of the Americas, announced this week that its shareholders had approved a 1-for-10 reverse stock split, which took effect for Tuesday’s trading session on the NASDAQ, where Terremark closed Thursday at $7.28.

The company’s common stock traded below a dollar in recent years, but Terremark was repeatedly able to use its shares to secure loans and reduce debt through debt-for-stock swaps. In March, the company raised $43.8 million in a secondary stock offering, selling 60 million shares at 73 cents a share. At the end of 2004, Terremark purchased the Technology Center of the Americas for $75 million, assuming control of the immense facility that houses its NAP operations, which occupy 240,000 square feet in the 750,000 square foot facility.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.