SAVVIS Secures $85 Million Loan.
2005-06-13, HostMan.biz
Managed services, application and Web hosting provider SAVVIS (savvis.com) announced on Monday that it had obtained $85 million in new financing.
The company says it has used part of the funds to repay a $53 million lease agreement with General Electric. In the long term, SAVVIS expects the financing to reduce its interest costs, while expanding its debt capacity and working capital.
"This new credit facility both reflects and contributes to continued improvement in SAVVIS's financial condition," says Jeff Von Deylen, chief financial officer of SAVVIS. "Our improved Adjusted EBITDA performance since our March 2004 acquisition of certain assets of Cable & Wireless has provided an opportunity to lower our interest costs, eliminate certain restrictive financial covenants, and increase our financial flexibility. We remain confident that SAVVIS will achieve Adjusted EBITDA of $55-65 million in 2005, and are revising our projection for cash interest expense payments from between $15 million and $16 million to between $14 million and $15 million."
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