CyrusOne Raises $600M to Fund Growth

CyrusOne has raised $600 million in debt capital, consisting of a $450 million credit facility and a $150 million loan.

Access to a bigger war chest boosts the data center provider’s ability to increase its footprint in a capital-intensive market. CyrusOne, which went public last year, has been on an aggressive expansion trajectory this year.

The credit facility replaces an existing secured $225 million credit facility with an unsecured one. It is both bigger and comes with a lower interest rate (1.7 percent as opposed to 3.25 percent).

“We are pleased with the results of the transaction,” CyrusOne CFO Kimberly Sheehy said. “In moving to an unsecured structure, while significantly increasing the aggregate commitment, we have enhanced financial flexibility and the capacity to fund our growth at attractive interest rates.”

So far in 2014, the company bought a large piece of land in northern Virginia, where it is building a 48-megawatt data center, kicked off multiple construction projects on its home turf in Texas and broke ground on a 12-megawatt facility in the Phoenix market.