Compass Datacenters and KeyBank, as syndication agent, have secured a $25 million credit commitment from CIT Group Inc. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. CIT joins Compass' other financial partners that have supported the company's growth across the United States, including KeyBank, Regions Bank and Raymond James. Compass will use this credit facility to fulfill customer orders for data center facilities and expand Compass' operations into additional metro areas with burgeoning demand for dedicated data centers. This latest commitment brings the total credit facility to $135MM.
"Strong relationships with our banking partners are critical to support the growth at Compass. I am very pleased to add CIT to our facility," said Chris Crosby, CEO of Compass Datacenters. "CIT has been very active in the data center space, and I look forward to adding their expertise to Compass' great banking partners. These funds will be utilized to support the vision that we have to provide our dedicated data centers anywhere our clients need them. I envision 2015 to be a year in which we scale the business not only in terms of new customers, but also as it relates to the people, processes and systems behind our unique approach to building and operating world-class data centers. This commitment supports that vision."
"CIT is pleased to support Compass through our participation in this financing transaction," said Joe Junda, managing director, CIT Corporate Finance, Communications, Information Services & Technology Financing. "The company's built-to-suit product seeks to address the major risks faced by data center investors, such as large capital outlays and lease-up risks, by securing long term leases and building Tier III certified scalable data centers that can be built efficiently anywhere in the U.S. Compass has an excellent management team, led by Chris Crosby, which has deep experience in data center development and construction. Participation in this transaction further supports CIT's commitment in the data center sector and we look forward to growing this relationship with Compass."