IO Closes $505 Million In Financing From Deutsche Bank And Macquarie Capital
IO announces plans to build multi-story data center in Phoenix.
IO has announced it has raised $445 million in debt capital from Deutsche Bank and $60 million in additional growth capital from an affiliate of Macquarie Capital.
The proceeds from the Deutsche Bank loan allowed IO to refinance its existing U.S. indebtedness. In addition, IO has exercised its purchase options to acquire the land and buildings underlying its IO.New Jersey and IO.Ohio data centers. IO will use the proceeds from the Macquarie Capital transaction to further its international and domestic growth and for general corporate purposes.
IO also announced that it purchased approximately nine acres adjacent to its Phoenix data center campus and that it has plans to substantially expand capacity at that campus. IO plans to build a three-story data center to support its colocation and cloud services. The new data center will have over 100 MVA in total capacity, doubling the amount of capacity it currently offers in the Arizona market. IO plans to break ground on the new building in late 2016 and open in 2017, deploying one module at a time.
“This capital raise reflects the robust momentum in the worldwide data centre market — the physical layer of the Internet,” said George Slessman, IO chief executive officer. “We will use this capital to continue our disruption of the data centre industry; bringing web scale data center capability to any scale business.”
“IO’s ability to execute a large-scale capital raise in the current market environment represents a substantial vote of confidence in IO and directly benefits our customers,” said Anthony Wanger, IO president. “IO attracts capital because we attract and grow key customer relationships.”
IO operates the most highly efficient, sustainable and secure data centers for many of the world’s most demanding customers, including Goldman Sachs, CBS Interactive, Allianz, LexisNexis, StarHub, Arizona State University, and more.