Virtualization Technology News and Information
SAVVIS Secures £35 Million Credit Facility
SAVVIS, Inc., a global leader in IT infrastructure services for business applications, today announced that its subsidiary, SAVVIS UK Ltd., has obtained a five-year, £35 million (approximately $69 million) credit facility with Lombard North Central Plc. SAVVIS UK will use the credit facility to fund construction of its Slough, U.K. data center first announced in December 2007 and scheduled for opening in the fourth quarter of 2008.

SAVVIS Chief Financial Officer Jeff Von Deylen commented, This new credit facility funds construction of a high-quality SAVVIS data center featuring state-of-the-art managed hosting and managed network capabilities in one of the worlds strongest markets for IT infrastructure services. By arranging financing in the United Kingdom, we have eliminated the negative economic impact of current exchange rates while ensuring an attractive rate structure. We are very excited about our opportunity to grow globally while maintaining our judicious approach to capital spending.

The five-year term of the facility begins on completion of the construction of the data center, with quarterly interest-only payments for the first two years. The interest rate is one- or three-month GBP LIBOR plus 2.8%, and SAVVIS UK has the option of fixing the rate at the available lender swap rate plus 2.8% for a minimum of three years up to the remainder of the Facilitys term or any six-month increment thereof. For full details on the terms of the facility, please see SAVVIS Form 8-K to be filed with the U.S. Securities and Exchange Commission on or before July 3, 2008.

The new Slough data center supports SAVVIS global expansion by providing additional capacity to accommodate the growth of our existing customers for years to come, said Richard Warley, International Managing Director for SAVVIS. It also allows us to expand our solution sets to offer new customers a broad range of IT infrastructure services ranging from colocation hosting and network services to managed and virtualized IT infrastructure services.

Published Tuesday, July 01, 2008 5:34 AM by David Marshall
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