Internap Network Services (INAP) is the latest company to line up additional financing to support its infrastructure plans. The company said Tuesday that it has closed a new four-year senior secured credit line from Bank of America. The agreement includes a $5 million revolving credit facility (which may be increased by $15 million) and a $30 million term loan facility.
The Atlanta company, which provides intelligent routing services that help bypass Internet congestion points, said it will use the proceeds to refinance existing debt and fund the expansion of its colocation facilities. Internap has announced a series of facility expansions over the past two years, including several additions to its Seattle colo space, and expansions in Toronto, Los Angeles, Boston and New York. The latest expansion, a $40 million initiative announced in June, did not identify the specific cities targeted for new colo space.
"Internap is focused on capturing the significant growth opportunities before us while operating the business with prudent cost controls," said David A. Buckel, chief financial officer of Internap. "Our strong financial performance and balance sheet have enabled us to secure a favorable credit facility despite a challenging macro economic environment. This financing will support our expansion initiatives in a cost effective and flexible manner and allow us to execute against our aggressive business plan."
Internap also announced this morning that it is providing its Flow Control Platform (FCP) to HostMySite.com, a Newark, Delaware based web hosting company.