Switch & Data Reels in $100M

September 8th, 2009 by · Leave a Comment

Datacenter specialist sdxc has tapped the credit markets, reeling in $100M in senior secured financing from a syndicate of banks arranged by RBC Capital Markets.  The interest rate is variable but seems quite low at first glance, and financing will be in the form of delayed draw term loans.  It's not particularly long term debt, they will start repaying principle in 2011 and finish in 2014.

Switch and Data will use the funds to expand its datacenter footprint over the next year or two, starting with its previously announced efforts in Atlanta.  That's welcome news of course, and hopefully it's part of a broad revival of construction of additional square footage to meet long term demand.

When put in the context of Global Crossing's plans to raise $650M, perhaps the financing window has opened a bit wider in the last few weeks.  Is the financial sector gaining confidence in the prospect of a recovery?  Anyone else out there raising money this week?  Hmmmm...

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Categories: Datacenter · Financials

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