Daily News: May 29, 2014

KeyBank, Others Up Compass Datacenters Revolver

Compass Datacenters completed a new round of capital raising to support the company’s expansion into additional geographic markets and to fund new data center construction projects for customers. This new capital consists of $35 million in additional equity commitments and $65 million in additional capacity under Compass’ now $110 million revolving credit facility.

The additional equity is provided by the original investors from Compass’ prior round of funding, and the additional capacity under the revolving line of credit has been provided through a syndication of the credit facility by KeyBank, bringing Regions Bank and Raymond James into the facility. The revolving line of credit maintains an accordion option allowing the credit facility to be upsized at a later date by an additional $40 million for a total of $150 million.

“Compass Datacenters is unique in the data center industry, and its products meet a rapidly growing need for dedicated data centers that can be built in locations not served by other providers. Compass’ model is resonating with service providers and corporate customers, which are strongly drawn to the technical specifications of Compass’ products, the fast six-month delivery timeframe and the level of control that Compass provides customers,” said John Murphy, managing director at KeyBank. “Compass has identified a strong market need, and they provide solutions that will be difficult for anyone else to compete with. We are bullish on Compass, and this new funding is designed to give the company the capital it needs to implement an aggressive growth plan.”

Compass Datacenters builds natural disaster-resistant, Tier III-certified, LEED Gold, dedicated data centers.