Data center services provider Latisys has expanded its credit facility from $110 million to $125 million, the company said today. The company said the credit facility increase was "2x oversubscribed," reflecting strong lender investor interest in the grwth prospects for the company and the data center sector.
The bulk of the additional $15 million will be used to expand capacity at Latisys’ 123,000 square foot data center campus in Ashburn, Virginia. In early 2011, Latisys added 14 megawatts of additional power and opened 26,000 square feet of new raised floor space at the facility.
"Over the past several months, Latisys has strategically scaled its operations through acquisitions and facility expansion, while continuing to invest resources towards enhancing our managed hosting and soon-to-be released next generation cloud platform," said Doug Butler, Chief Financial Officer for Latisys. "Increasing the credit facility further enables Latisys to pursue the tremendous business opportunities we are seeing in Greater Washington, DC and our other key markets, and bring innovative solutions to our customers."
The credit facility is funded by the existing consortium of eight 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 was founded in 2007 as Managed Data Holdings (MDH) with backing from Catalyst Investors and Great Hill Partners. It has moved quickly to build a footprint in the managed hosting sector, acquiring three providers and quickly expanding its data center capacity.