Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

May 05, 2011

Highwinds Secures $50 Million Credit Facility

According to a recent press release, Highwinds (News - Alert) Capital, Inc. has secured a new $50 million credit facility with Silicon Valley Bank and Comerica Bank. The new credit facility will be used by Highwinds to achieve a more attractive all-in cost of capital. The agreement with top banks proves the company’s impressive financial profile, strong market position, positive cash flow and sustained profitability in its partnerships.

“Silicon Valley Bank’s mission is to help our clients succeed. Highwinds has effectively innovated and flawlessly executed in the high-growth market of online content and video delivery,” said Dale Kirkland, senior vice president of Silicon Valley Bank, in a statement. “We are honored to be Highwinds’ partner and to be providing a significant senior secured financing solution that supports Highwinds’ strategic objectives.”

A major reason behind banks approving such massive credit facility was Highwind‘s diverse portfolio. The company is engaged in providing diverse range of solutions, which include for content delivery, IP transit, transport, peering, colocation, content storage and IP software. Also, Highwinds strong financial condition puts it in a position to finance future growth initiatives, which may include strategic acquisitions, infrastructure expansion and the hiring of additional personnel.

“Our strong balance sheet, and the ability to leverage it in our banking relationships, is a testament to our people and our technology,” said Steve Miller, chairman and CEO of Highwinds. “Every day, I’m honored to be surrounded by some of the industry’s most brilliant minds, the best technology in the space, and a team that knows what it takes to attract and retain prestigious customers. These are the things that make high-profile banking transactions like this one possible.”

Recently, Highwinds completed a major port upgrade to a single 80G connection on the Amsterdam Peering Exchange (AMS-IX), one of the fastest growing Internet exchanges in the world. This expansion is aimed at supporting the rapid growth of the Highwinds CDN (Content Delivery Network) and to further strengthen Highwinds’ commitment to the global peering community.

Rahul Arora is a TMCnet contributor. He has worked as an editor and freelance writer for several reputed organizations in India. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell


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