Switch and Data gets $100 million in delayed-draw term loans

By Sara Rosenberg

New York, Sept. 8 - Switch and Data Facilities Co. Inc. closed on $100 million of delayed-draw for 12 months term loans, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

RBC Capital Markets acted as the lead arranger, bookrunner and administrative agent on the deal that was completed on Sept. 4.

Initial pricing on the loans is Libor plus 450 basis points with a 2% Libor floor. Pricing can range from Libor plus 350 bps to 450 bps based on total leverage.

Repayments of principal will start in 2011 and end in 2014.

Financial covenants include a consolidated total leverage ratio, a consolidated senior leverage ratio, an annualized consolidated interest coverage ratio, an annualized consolidated fixed-charge coverage ratio and an annual consolidated capital expenditure maximum.

The financing will accelerate the company's capacity expansion program, including its previously announced site in Atlanta, and fund expansion in other high-growth markets.

Proceeds will be used to fund capital expenditures and for working capital and other general corporate purposes.

The first funding is expected to occur after Oct. 1.

Switch and Data is a Tampa, Fla.-based provider of network neutral data center and internet exchange services.

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