Latisys Secures $200 Million Credit Facility
March 8th, 2013 By: Jason Verge
The expansion at Latisys shows no signs of slowing. The company has just announced a new $200 million credit facility, including a 6-year, $180 million institutional term loan and a 5-year $20 million revolving credit facility. This means the company will continue its 2012 momentum, spreading that capital across Latisys’ Infrastructure as a Service (IaaS) platform to drive accelerating growth and customer acquisition. The data center service provider said it will continue to expand its facilities adding high density capacity, enhancing its technology platform, increasing automation, as well as adding high skilled personnel to the team.
“Latisys’ growth strategy centers around ongoing strategic expansion of our IaaS platform and our ability to provide innovative right-sized, hybrid IT solutions that solve business problems,” said Doug Butler, Chief Financial Officer for Latisys. “The new credit facility provides additional capital necessary to maintain technology leadership as well as additional support services required to respond to increased demand for higher margin managed hosting and cloud services.”
The credit facility was substantially oversubscribed, with commitments from several leading sector lenders and institutional investors. The credit facility was arranged by RBC Capital Markets, TD Securities (USA) and SunTrust Robinson Humphrey, and funded by a consortium of over 20 leading financial institutions and institutional investors.
Over the past four years Latisys has invested more than $125 million in expanding its facilities and services to keep pace with demand. Latisys’ national expansion has been ongoing through 2012 and into 2013. Recent announcements include DEN2—Latisys’ state-of-the-art data center in Denver—along with the ASH1 DC5, CHI DC6 data centers that added 22,000 and 10,000 square feet of secure, ultra high-density raised floor in Northern Virginia and Chicago respectively. In Southern California, Latisys recently announced an additional 12,000 square feet in its Irvine, CA data center.
Latisys’ total data center platform now exceeds 343,000 square feet across seven data centers in four major markets. Product-wise, it launched its next generation managed hosting and cloud platform and launched its unified service desk in 2012.