Savvis Secures $625 Million Credit Line
July 15th, 2010 By: John Rath
Savvis (SVVS) announced that it has arranged for a new senior secured credit facilities providing for borrowings of up to $625 million. These facilities will consist of a $550 million term loan, maturing in 2016, and a $75 million revolving credit facility, maturing in 2014. Led by Merrill Lynch, Bank of America and Morgan Stanley Senior Funding, the net proceeds will be used, together with cash on hand, to repay existing indebtedness.
Although revenue was down slightly in the first quarter of 2010, Savvis shares soared after the announcement due to management guidance and several key customer wins. There have been several items in the first half of this year showing promise in delivering on the sequential quarterly revenue growth projected for the rest of the year.
- In March Savvis appointed Jim Ousley as CEO , filled key sales positions and expanded Asia-Pacific Cloud solutions.
- To meet the demands of the financial vertical, the company expanded itsr footprint in Chicago, Slough (UK), and most recently the launch of NJ2X in Weehawken, New Jersey.
- In June Savvis acquired Canadian managed IT and colocation provider Fusepoint for $124.5 million as a continued international expansion to new markets.
- With the launch of Savvis Symphony, a Virtual Private Data Center offering, Savvis hopes to continue to capitalize on what Gartner says will be a worldwide cloud services market surpassing $68 billion in 2010.
- Savvis was recently the recipient of the Best European New Cloud Service Award at the 6th Data Centres Europe 2010 awards ceremony.
Savvis is set to release second quarter 2010 financial results before the market opens on Monday, July 26th.