Switch and Data Taps Credit Line for $22M
January 9th, 2009 By: Rich Miller
Switch and Data (SDXC) has borrowed an additional $22.5 million through an existing credit line, according to a filing with the Securities and Exchange Commission. The company said it use the funds to support investments in its data center network in 2009, including the continued expansion of its new data center in North Bergen, New Jersey.
The $22.5 million was a delayed draw term loan built into Switch and Data’s March 2008 debt financing from a syndicate of banks led by RBC Capital Markets and GE Corporate Lending. The agreement included an initial $120 million term loan, which was used to fund the lease for the New Jersey site.
Just like everyone else, Switch&Data would rather have the cash on hand than hope that it will be there later on when they need it.