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KeyBank, Others Increase Compass Datacenters Facility to $110MM

May 29, 2014, 07:49 AM
Filed Under: Technology

Compass Datacenters has completed a new round of capital raising to support the company's expansion into additional geographic markets and to fund new data center construction projects for customers. This new capital consists of $35 million in additional equity commitments and $65 million in additional capacity under Compass' now $110 million revolving credit facility. The additional equity is provided by the original investors from Compass' prior round of funding, and the additional capacity under the revolving line of credit has been provided through a syndication of the credit facility by KeyBank, NA, bringing Regions Bank and Raymond James into the facility. The revolving line of credit maintains an accordion option allowing the credit facility to be upsized at a later date by an additional $40 million for a total of $150 million.

"This funding provides Compass with the resources to bring our proven model to more customers and more geographic regions, which will drive the next stage of Compass' growth," said Chris Crosby, CEO of Compass Datacenters. "Our successful projects in markets such as North Carolina, Tennessee, Minnesota and Massachusetts have demonstrated the value proposition of our unique solution for customers, and those projects have also affirmed the quality of our facility design, the effectiveness of our construction methodology, and our ability to deliver on our six month construction timeline. We have proven our vision with multiple customers, and this new funding allows us to focus on implementing our growth plan. We are excited to add new partners Regions Bank and Raymond James to the Compass team."

"Compass Datacenters is unique in the data center industry, and its products meet a rapidly growing need for dedicated data centers that can be built in locations not served by other providers. Compass' model is resonating with service providers and corporate customers, which are strongly drawn to the technical specifications of Compass' products, the fast six-month delivery timeframe and the level of control that Compass provides customers," said John Murphy, Managing Director at KeyBank. "Compass has identified a strong market need, and they provide solutions that will be difficult for anyone else to compete with. We are bullish on Compass, and this new funding is designed to give the company the capital it needs to implement an aggressive growth plan."

Compass Datacenters builds natural disaster-resistant, Tier III-certified, LEED Gold, dedicated data centers where customers need them without forcing them to sacrifice features or performance. The innovative design of its facilities make it possible for Compass Datacenters to deliver state-of-the-art solutions that enhance control and simplify capacity planning for customers anywhere in the United States, serving the vast majority of companies that are not located in the few markets where geographically-constrained data center facilities are currently concentrated.

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