Switch and Data Announces $50 Million Funding
Debt Financing Arranged Through Deutsche Banc, First Union

Feb. 26, 2001 -- Switch and Data, a leading provider of carrier-neutral colocation centers, has secured $50 million in debt financing from Deutsche Banc Alex. Brown and First Union National Bank, the company announced last week.
This funding will be used to further expand Switch and Data's nationwide footprint of telecom facilities, known as Convergent Network Centers.
Deutsche Banc Alex. Brown and First Union each provided $25 million in debt funding in a transaction that closed on January 30. This latest round of financing adds to the $136 million in equity financing the company has raised since 1997.
"This round of funding demonstrates Switch and Data's strength in the marketplace, and will enable us to continue to expand our colocation footprint," said Patricia Higgins, CEO and president of Switch and Data. "Our partnership with the world's top financial institutions attests to our company's strong business model and commitment to providing fast, flexible solutions for service providers moving into new markets."
In girding for further expansion, the company cited research from Ovum predicting that the global colocation market will grow to more than $55.8 billion by 2005, with North America leading the way with 42 percent of the worldwide market share. Switch and Data already has data centers in 34 metropolitan areas.
"Switch and Data is well positioned in the industry and is in one of the most rapidly growing segments of the telecommunications industry," said Colleen Roux, director in telecom finance, Deutsche Banc Alex. Brown.
"We are very impressed by both the company's business model and the company's position in the industry," added Mark Harden, managing director leveraged finance, First Union Securities, Inc. "Colocation is a strong growth industry and Switch and Data is a leader in the sector that is well-positioned for future growth."
Founded in 1997, Switch and Data is headquartered in Tampa, Fla. and provides colocation, value-added services and technical support to an array of service providers such as Internet Service Providers (ISPs), competitive local exchange carriers (CLECs), application service providers (ASPs), Managed Service Providers (MSPs), data storage companies and telcos.