CyrusOne Gets $150 Million for Data Center Expansion
- By Liam Eagle, November 30, 2009
(WEB HOST INDUSTRY REVIEW) — Colocation provider CyrusOne (www.cyrusone.com), which describes itself as “the largest corporate colocation provider in Texas,” announced on Monday that it has secured $150 million in credit to fund the expansion of its data center operations.
The $150 million senior secured credit facility, according to the company’s announcement, is provided by a group of banks led by TD Securities, RBC Capital Markets, SunTrust Robinson Humphrey and SG Americas Securities.
CyrusOne says the facility refinanced its outstanding debt and substantially increased its available borrowing capacity.
“Our decision to seek expansion funding was a result of a solid pipeline of customer requirements in Houston, Dallas and Austin,” said David Ferdman, CyrusOne president and CEO, quoted in the press release. “With this new credit facility and a significant incremental equity commitment from ABRY Partners, we not only have significant resources to support and accelerate our growth to meet these requirements; but this also dramatically lowers our cost of capital.”
CyrusOne has been expanding its data center facilities throughout 2009, expanding its Dallas data center, building a new facility in Austin, and adding a third facility to its presence in Houston this year.
The company’s business is focused in Texas. It offers an interactive tour of its data centers and asociated services on the CyrusOne website.
The subject of debt lending – particularly as it pertained to the financing of new data center space – was a subject of much discussion at the Tier 1 Research Hosting Transformation Summit in Las Vegas this year. And it was discussed in detail in an article “Debt Lending Returns,” which appeared in the October 2009 issue of WHIR magazine.