RagingWire Secures $140 Million Credit Facilities Led By BofA
RagingWire Data Centers, a data center provider, announced that on December 9, 2011, the company secured $140 million in revolving credit facilities with two banks led by Bank of America, priced at a rate of US$ LIBOR plus 1.75% or 2.02% all-in.
“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.”
The five-year revolvers, combined with the company’s cash flow, will provide RagingWire the necessary funding to fuel rapid growth in both the East and West coast markets. In the case of RagingWire’s second Sacramento data center, CA2, expansion has been outpaced by demand for each phase of the building project. As each phase of CA2 has been commissioned, it has sold out ahead of the next phase’s completion. This insatiable demand for RagingWire’s technologically advanced colocation services has driven the company’s nationwide 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 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.”