Switch and Data plans new credit facility with IPO

By Sara Rosenberg

New York, Sept. 27 - Switch and Data Inc. plans on getting a new credit facility simultaneously with its initial public offering of common stock, according to an S-1 filed with the Securities and Exchange Commission Wednesday.

However, at this time, the company has no specific agreements or commitments and is not engaged in any substantive negotiations with respect to the transaction, the filing said.

Proceeds from the new facility would be used to repay existing bank debt, for capital expenditures, for working capital and other general corporate purposes.

Closing on a new credit facility is not a condition of the IPO.

If the company does not get a new facility, 75% of the proceeds from the IPO will be used to repay bank debt and the remaining 25% will be used for capital expenditures, for working capital and other general corporate purposes.

Switch and Data is a Tampa, Fla., provider of network neutral interconnection and colocation services.

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