Peak 10 Expands Credit Line
January 5th, 2010 By: Rich Miller
In the latest financing announcement from the data center sector, Peak 10 said today that it has expanded its credit facility from $60 million to $95 million, and will invest the additional funds in additional infrastructure and a technology refresh support its growing cloud computing business, the company said today. The new agreement enhances a credit line that was initially announced in May 2008. RBC Capital Markets was the arranger and book runner for the bank syndicate providing the credit line.
“Our consistently improving financial results and strong cash flow coupled with the expanded credit facility further position us to execute our business plan centered on organic growth and new market expansion,” said Brian Noonan, the chief financial officer of Peak 10. “Being able to obtain flexible and competitive terms in the current market and attract new lenders speaks volumes about our disciplined business operating philosophy and financial metrics.”
Peak 10 has focused on building data centers in second-tier markets in the southeastern U.S. The company has grown through its acquisitions of existing data center providers and facilities in Louisville, Ky., Nashville, Tenn., Richmond, Va. and most recently, Fort Lauderdale, Fla.In late 2007 and early 2008, Peak 10 opened “greenfield” data centers in Atlanta and Cincinnati and has expanded its facilities in Nashville, Tampa, Fla. and Raleigh and Charlotte, N.C.
Peak 10 said it plans invest additional capital in its managed services platform, particularly its next-generation private cloud infrastructure. The company said it will be performing a technology refresh to provide its private cloud customers with increased scalability and performance with access to external cloud resources.