Peak 10 Announces Expanded $60 Million Credit Facility
May 10, 2008
Peak 10, the leading independent data center operator and managed services provider, today announced it has amended and expanded its credit facility. RBC Capital Markets was the Lead Arranger and Sole Book Runner for the bank syndicate. GE Capital Corporation was the syndication agent and CIT participated in the bank syndicate as the documentation agent. The majority of the $60 million credit facility will be used for capital expenditures to fuel the company’s organic growth and for general corporate purposes. Royal Bank of Canada will act as Administrative Agent for the Lenders.
“Our expanded credit facility coupled with Peak 10’s strong internally generated cash flow fully funds our business plan,” said Brian Noonan, chief financial officer of Peak 10. “Our history of consistent quarterly growth and strong balance sheet management has enabled us to obtain debt on attractive terms with an expanded group of lenders. We are well positioned to pursue in-market and new market expansions, including acquisitions.”
Since being founded in 2000, Peak 10 has managed a path of steady and consistent growth organically in its local markets and through its acquisitions of established data center companies in Louisville, Ky., Nashville, Tenn. and Richmond, Va. Last fall, Peak 10 opened a green field data center in Atlanta, Ga. followed by a move into Cincinnati, Oh. in December 2007. Peak 10 currently has market expansion construction underway in Nashville, Louisville, Raleigh, Tampa and Charlotte, and the company will initiate additional construction for new client growth later this year and in 2009.
“This expanded credit facility sends a powerful message to our customers, namely that we have positioned Peak 10 to expand to meet their growth needs and technical service needs for the future,” said David Jones, president and chief executive officer of Peak 10. “At the same time, we remain aggressive with options to expand into more markets and to execute our strategic growth initiatives.”
Peak 10’s services have consistently grown because they improve reliability, lower costs and maximize internal resources for customers while keeping their valuable information technology assets close to the business. The company combines its secure network, high-tech data centers and portfolio of managed services with localized engineering and support to serve market-leading companies nationwide with an “intentional” customer support philosophy. Peak 10 owns and operates twelve data centers in nine key markets that include Cincinnati, Oh.; Atlanta, Ga.; Raleigh and Charlotte, N.C.; Tampa and Jacksonville, Fla.; Nashville, Tenn.; Louisville, Ky.; and Richmond, Va.
About Peak 10, Inc.
Peak 10 is the leading independent data center operator and managed services provider delivering scalable, economical and reliable solutions for hosting and managing complex information technology infrastructure. The company combines its twelve world-class data centers and portfolio of managed services with localized engineering and support to serve market-leading companies including LendingTree, Rivals.com, Global Knowledge, Pergo, Churchill Downs, The Fresh Market and the Jacksonville Jaguars. Peak 10 is SAS 70 Type II compliant and helps companies meet the requirements of various regulatory compliance acts such as Sarbanes-Oxley (SOX), HIPAA, PCI and Gramm-Leach-Bliley (GLBA).