Peak 10 Announces Expanded $95 Million Credit Facility
Peak 10, a managed services company with world-class data centers in ten metropolitan markets, has amended and expanded its credit facility to $95 million. RBC Capital Markets was the Sole Lead Arranger and Sole Book Runner for the bank syndicate. GE Capital Corporation was the syndication agent and Royal Bank of Canada was the documentation agent. The majority of the $95 million credit facility will accelerate Peak 10’s capacity expansion plans and fund development in its high-growth markets. Royal Bank of Canada will act as Administrative Agent for the Lenders.
“Our consistently improving financial results and strong cash flow coupled with the expanded credit facility further position us to execute our business plan centered on accretive organic growth and new market expansion,” said Brian Noonan, the chief financial officer of Peak 10. “Being able to obtain flexible and competitive terms in the current market and attract new lenders speaks volumes about our disciplined business operating philosophy and financial metrics.”
The expanded $95 million credit facility is an integral part of Peak 10’s strategic plan which has been methodically executed since the company’s inception. The company 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., Richmond, Va. and most recently, Fort Lauderdale, Fla. In late 2007 and early 2008, Peak 10 opened greenfield data centers in Atlanta, Ga. and Cincinnati, Oh. respectively. Additionally, over the last 18 months Peak 10 has completed construction of additional facilities in its Nashville, Tenn.; Tampa, Fla.; and Raleigh and Charlotte, N.C. markets to meet customer growth and demand.
“We have consistently invested significant success based capital into our existing facilities and are continuously enhancing and upgrading our technology solutions for our customers,” said David Jones, the president and CEO of Peak 10. “Our management team remains committed to an aggressive posture in executing our strategy of organic in-market growth and expansion into new metropolitan markets with attractive growth prospects.”
Peak 10 will invest additional resources and capital into its managed services platform, particularly its next-generation private cloud infrastructure. The company has been delivering cloud-based solutions to customers for several years and will be performing a technology refresh to stay ahead of the market. Peak 10 customers who utilize its private cloud solutions will enjoy increased scalability and performance with access to external cloud resources, all while maintaining a high level of security and integrity.
“Peak 10’s ability to expand its credit facility is a result of its dedicated and experienced management team and commitment to scale the business in a disciplined manner,” said Kevin Brandon, Peak 10 board Chairman. “With a strong balance sheet and rising cash flow, Peak 10 has tremendous momentum entering 2010.”
