Colocation specialist Switch and Data (SDXC) has obtained $100 million of debt financing from a syndicate of banks arranged by RBC Capital Markets, and will use the money to accelerate its data center expansion program, including plans to complete a major data center in downtown Atlanta.
Switch and Data said the decision to seek expansion funding was driven by strong demand in its sales pipeline. “Improved bookings combined with increasing customer demand afford us the opportunity to accelerate our investments for growth,” said Keith Olsen, CEO and President of Switch and Data. “Network-centric companies are rolling out multiple new service offerings which continue to demand more infrastructure and interconnection capacities across more local, regional and global markets.”
In September 2008 Switch and Data leased a 79,200 square foot facility in at 180 Peachtree Street in Atlanta, a former Macy’s department store that now houses data center space for companies including Level 3.
The $100 million is in the form of delayed draw term loans, governed by an amendment to the company’s existing credit agreement. Switch and Data can draw down the loans over the next year, with interest set at 4.50 percent above a 2 percent LIBOR floor. Switch and Data will pay off the loan between 2011 and 2014.