RagingWire Data Centers has secured $140 million in revolving credit facilities with two banks led by Bank of America, which will provide the growing colocation provider with the funding to pursue expansion projects on both the East and West coast.
"RagingWire now has approximately 500,000 square feet of data center building space in Sacramento and 150,000 square feet under construction in Virginia, all state-of-the-art," said Yatish Mishra, president and chief executive officer of RagingWire. "The highly favorable structure of the credit facilities continues to demonstrate the financial market's confidence in RagingWire's strategic vision, operational excellence and growth prospects into 2012 and beyond."
The five year revolving credit lines are priced at a rate of LIBOR plus 1.75% (or 2.02% all-in).
RagingWire said that each phase of its second Sacramento data center, has sold out ahead of completion. This demand for RagingWire's colocation services has driven the company's expansion to Northern Virginia and the additional focus on wholesale colocation services.
"RagingWire's successful expansions in California and Virginia demonstrate the quality of management, fiscal responsibility, stable cash flow, and the robust revenue growth that Bank of America values in its partnerships," said Dan Evans, senior vice president of Bank of America's Middle Market Banking Western Region. "We look forward to many RagingWire success stories as we continue to build our relationship."
"RagingWire has secured a very favorable arrangement, both in terms of cost and flexibility," said Mark R. Morrow, vice president and chief financial officer of RagingWire. "Bank of America has seen the growth we have experienced. They have confidence in RagingWire's ability to execute our strategic objectives and grow the business as we expand into Virginia and continue our success in growing the largest data center in California."