Story image

Global Switch secures new credit with HSBC for long-term data center finance

24 Feb 17

APAC/Europe data centre provider Global Switch has now officially closed a new revolving credit facility with HSBC Bank, which will bring around S$768.4 million in financing.

The new revolving credit facility (RCF) includes all previous lenders, Barclays, Credit-Suisse, Deutsche Bank and HSBC. The Bank of China has also joined as a lender and mandated lead arranger.

The new RCF offers many opportunities for Global Switch, including a longer duration, an S$88.4 million increase in facility size and better pricing compared to the last one.

"This new RCF is very good news for Global Switch; we are extremely pleased with the exceptional terms that reflect the strength of our business model and balance sheet. The new contractual terms also provide certainty and flexibility of funding and will help support our next phase of growth and development of the business,” explains Global Switch CEO John Corcoran.

The RCF’s new margin is at sub 1% and the committed facility term matures in April 2021. The improved financial terms represents ‘industry leading pricing’, which means Global Switch can continue to deliver solutions that provide value for money and generate returns for shareholders, the company says. 

Global Switch believes that the long-term commitment from the participating banks shows that the company is strong and continuing to display low leverage, as displayed in its credit ratings. 

“We are delighted to confirm the continuing long-term support of HSBC, Barclays, Credit Suisse and Deutsche Bank, and we welcome Bank of China as a new lender under the RCF. We remain fully committed to maintaining low leverage over the long run and to further consolidating our current strong investment grade credit ratings,” adds Global Switch CFO David Doyle.

In December 2016, Global Switch introduced a new strategic vendor that represents a consortium of Chinese corporate and institutional investors.

In the same month, Global Switch also secured two major customer pre-commitments for data center services in Singapore and Hong Kong.

The new strategic investor will help grow Global Switch access to telcos and internet providers looking to expand out of China, as well as bring existing Chinese bank relationships to a level that broadens lending support.

HPE extends cloud-based AI tool InfoSight to servers
HPE asserts it is a big deal as the system can drive down operating costs, plug disruptive performance gaps, and free up time to allow IT staff to innovate.
Digital Realty opens new AU data centre – and announces another one
On the day that Digital Realty cut the ribbon for its new Sydney data centre, it revealed that it will soon begin developing another one.
'Public cloud is not a panacea' - 91% of IT leaders want hybrid
Nutanix research suggests cloud interoperability and app mobility outrank cost and security for primary hybrid cloud benefits.
Altaro introduces WAN-optimised replication for VMs
"WAN-optimised replication allows businesses to continue working in the case of damage to on-premise servers."
DDN part of data mining mission on Mars
DataDirect Networks (DDN) today announced that it will be playing a role in one of NASA’s most critical missions.
Opinion: Data centre management can learn from the Navy
While a nuclear submarine may seem like a completely different beast from a data centre, the similarities in how they should be managed are striking and many.
14 milestones Workday has achieved in 2018
We look into the key achievements of business software vendor Workday this year
HPE building new supercomputer with €38m price tag
It will be installed at the High Performance Computing Center of the University of Stuttgart and will be the world's fastest for industrial production.