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.

Why total visibility is the key to zero trust
Over time, the basic zero trust model has evolved and matured into what Forrester calls the Zero Trust eXtended (ZTX) Ecosystem.
Gartner names Proofpoint Leader in enterprise information archiving
The report provides a detailed overview of the enterprise information archiving market and evaluates vendors based on completeness of vision and ability to execute.
QNAP introduces new 10GbE and Thunderbolt 3 NAS series
The new series is supposedly an all-in-one NAS solution for file storage, backup, sharing, synchronisation and centralised management. 
Tensions on the rise after Huawei CFO arrest
“Recently our corporate CFO, Meng Wanzhou, was provisionally detained by the Canadian authorities on behalf of the United States of America."
CyrusOne investing in new Amsterdam data centre
CyrusOne is continuing its rapid and relentless investment into Europe, with news emerging of a new facility in the Netherlands.
HPE to supply tech to Formula E racing team
“At HPE, we believe the future belongs to the fast, and we’re focused on accelerating what’s next for enterprises, including in the world of auto racing."
Why the future of IT infrastructure is always on and always available
As more organisations embrace digital business, infrastructure and operations leaders will need to evolve their strategies and skills to keep up.
Digital transformation in Europe a €333b business
IDC has shared its forecast for digital transformation spending in Europe, which looks to be a very profitable industry.