$110M Credit Line to Boost Growth at Latisys
August 16th, 2010 By: Rich Miller
Managed hosting provider Latisys has successfully refinanced its existing $65 million senior credit facility with a new $110 million credit line through a consortium of eight leading financial institutions.
Latisys said the funding will help the company continue its expand its facilities and services across key U.S. markets.
“The new capital enables Latisys to continue to scale our data center facility operations and services as one of the nation’s premier data center colocation and managed hosting providers,” said Doug Butler, Chief Financial Officer for Latisys. “The fact that our financing was heavily oversubscribed and includes the leading financial institutions for our sector is a testament to Latisys’ strong national platform of facilities in Irvine, Denver, Chicago and Ashburn, as well as the combined businesses’ profitability and prospects for continued growth.”
The new 5-year, $110 million credit facility consists of up to $85 million in term debt and a $25 million revolving credit facility. The refinancing, which also reduced the interest rates on Latisys’ borrowings, was funded by a consortium of eight leading financial institutions including RBC Capital Markets, TD Securities, Madison Capital Funding, Bank of America, CapitalSource, Caterpillar Financial Services Corp., GE Capital and SunTrust Robinson Humphrey.
Latisys recently established an east coast presence with a new 123,000 square foot data center in Ashburn, Virginia, and completed significant facility expansions at existing facilities in Chicago, Denver and Irvine, California.