Data center service provider ViaWest has receives $65 million in debt financing, the company said this week. The company said it will use the funds to continue its market expansion and to develop additional products for its cloud computing and managed hosting services.
ViaWest is a regional provider that has grown rapidly through acquisitions and organic growth. The Denver-based company was acquired by Oak Hill Capital Partners in 2010, and continued its rapid growth by opening new data centers in Portland, Oregon and Dallas last year, bringing its total number of data centers to 22.
"As a result of ViaWest’s outstanding growth and industry reputation, we received numerous commitments from new and existing lenders," states Michael Krza, Chief Financial Officer of ViaWest. "With this additional funding, we will continue to execute on our strategic growth plans, invest in new and expanded data center facilities and further develop the latest technologies and managed services our clients require."
Led by RBC Capital Markets (Sole Lead Arranger and Bookrunner), the $55 million upsize of the senior credit facility was oversubscribed and funded by several premier financial institutions. Barclays Private Credit Partners Fund L.P. and Solar Capital Ltd provided the remaining $10 million in the form of additional second lien mezzanine commitments.
The announcement is the latest sign of data center providers' ability to tap the debt markets for expansion funding. Other companies recently announcing debt funding include Vantage Data Centers, QTS, Telx Group and RagingWire.