Switch to tap revolver or use debt securities for Data Foundry buy

By Sara Rosenberg

New York, May 3 – Switch Inc. plans on using borrowings under its $500 million revolving credit facility or new debt securities to help fund its $420 million acquisition of Data Foundry Inc., according to a news release.

Funds for the transaction will also come from cash on hand.

Closing is expected by mid-2021, subject to customary conditions, including regulatory approval.

Combined pro forma net debt-to-adjusted EBITDA is anticipated to be 4.6x.

Wells Fargo Securities LLC advised Switch on the transaction.

Switch is a Las Vegas-based exascale technology infrastructure corporation. Data Foundry is an Austin, Tex.-based carrier-neutral colocation provider.

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