CyrusOne Arranges $150 Million Financing
November 30th, 2009 By: Rich Miller
High-density colocation provider CyrusOne has secured a new $150 million credit facility from a syndicate of banks, the company said today. The additional financing will accelerate growth in the company’s core Texas market, and allowed the Houston-based company to refinance its outstanding debt.
“Our decision to seek expansion funding was a result of a solid pipeline of customer requirements in Houston, Dallas and Austin,” said David Ferdman, President and CEO, CyrusOne. “With this new credit facility and a significant incremental equity commitment from ABRY Partners, we not only have significant resources to support and accelerate our growth to meet these requirements; but this also dramatically lowers our cost of capital.”
The Senior Secured Credit Facility was arranged through a syndicate comprised of several financial institutions including Toronto Dominion, Royal Bank of Canada, SunTrust Bank, Société Générale, CapitalSource Finance, Caterpillar Financial Services, and Webster Bank.
Cyrus One is owned by ABRY Partners, a Boston-based private equity firm that bought the company in 2007 and has backed the data center expansion program. In February the company leased an additional 81,000 square feet of space in Dallas and commissioned two new pods totaling 25,000 square feet in its existing 125,000 square foot Houston campus. In June it announced plans to build a new 94,000 square foot data center in West Houston, with an option to add a second 100,000 square foot facility on adjacent property, the company said today.
The expansion will eventually give the company more than 480,000 square feet of space in seven data centers in Texas, including three facilities in Houston, three in Dallas and one in Austin.