Europe/APAC cloud neutral data center provider Global Switch Limited officially launched an announcement of having closed a new revolving credit facility (“RCF”) with HSBC Bank. Compared to the previous RCF, facility size as well as pricing of the new RCF has been increased from £375 to £425, for the purpose of providing Global Switch with sufficient funding support for the next phase of growth and development of the business.
All lenders under the old RCF—including Credit-Suisse, Barclays, Deutsche Bank, and HSBC—will continue to be the lenders as well as mandated lead arrangers under the new RCF. Additionally, Global Switch also announced to welcome Bank of China joining the syndicate as a new lender and mandated lead arrangers under the RCF.
In addition to a long duration, the new RCF brings Global Switch other more opportunities, for instance, a £50 million increase in the size of the facility. Along with many improved financial terms is a new margin at sub 1%, which on one hand fully shows lenders’ confidence in Global Switch; on the other hand gives the company the possibility to deliver valued solutions for customers as well as superior returns for shareholders. It is also reported that Global Switch is allowed to retain significant headroom in the financial covenant. Funds drawn down under the new RCF will be used to refinance the old RCF and for other working capital purposes.
Established in 1998, Global Switch is a well-known owner and operator of multi-tenanted data centers, in addition to the leading developer of large scale network architecture in Asia-Pacific and Europe. As of date, the company has built good reputation for building superior data centers in industry-leading scale, resilience, and connectivity. There are ten data centers owned and operated by Global Switch, which are situated in Tier 1 cities across Asia-Pacific and Europe and occupying 300,000 square meters of world class technical space. Global Switch’s network has been the hometo some of the most forward-thinking public and private organizations, small and large. They rely on the company to support their mission critical IT infrastructure and connect them seamlessly to multiple telecoms, internet, and cloud providers.
Dating back to December 2016, Global Switch sold a 49% strategic stake in the business to a consortium of Chinese corporate and institutional investors. The consortium investing in Global Switch was pulled together by the Chinese data center company Daily-Tech Beijing and brought together a wide range of interests—from Jiangsu Sha Steel Group, the largest private steel maker in China, to Ping An Group, the major financial conglomerates in China—with the ultimate goal to grow up into a leading data center company around the world.
According to a major shareholder in Daily-Tech Beijing, Li Qiang, the investment offers Global Switch an opportunity to accelerate expansion across the world, especially in China. China has been one of the fastest growing markets with demands for data center providers delivering highly reliable, world-class secure and flexible products and services.