Exodus Secures $600 Million Credit Line

By Rich Miller
CarrierHotels News Staff

Nov. 1, 2000 -- Exodus Communications, Inc. said today it has entered into agreements with a syndicate of leading financial institutions providing for up to $600 million in senior secured credit.
The deal allows Exodus to borrow up to $225 million over the next five years on a revolving basis, and up to $375 million in senior secured term loans due in five years and seven years, respectively. The funding will be subject to satisfaction of various conditions.
The credit line provides Exodus with the ability to continue to expand its network without relying upon the stock market, where recent volatility has made it dicey for some telecom infrastructure firms to raise capital. Last Friday, InFlow Inc.cancelled a planned initial public offering, citing difficult market conditions.
"These facilities give Exodus access to a new, important source of capital to continue to execute our business plan," said Marshall Case, Exodus' Chief Financial Officer. "It also demonstrates the company's ability to access capital even during challenging market conditions.''
Chase Securities Inc. and Goldman Sachs Credit Partners L.P served as joint lead arrangers on the credit line, while Merrill Lynch acted as syndication agent, and Morgan Stanley Senior Funding, Inc. acted as documentation agent. Chase Manhattan Bank is acting as administrative agent for the facilities.
Exodus Communications is the leading provider of complex Internet hosting for enterprises with mission-critical Internet operations. Exodus manages its network infrastructure via a worldwide network of Internet Data Centers (IDCs) located in North America, Europe and Asia Pacific.