NaviSite, Inc. (NASDAQ: NAVI), a leading provider of application solutions, hosting and content delivery services, today announced that it has closed a $100 million Senior Secured Debt facility, which includes a six year $90 million term loan and a five year $10 million revolving credit facility. CIBC World Markets Corp. acted as the lead arranger and sole book runner for this transaction.
Proceeds from the term loan facility have been used to extinguish NaviSite’s existing debt with Silver Point Finance LLC and to pay transaction fees and expenses. Proceeds will also be used to fund capital expenditures to support NaviSite’s data center expansion plans and for general corporate and working capital purposes. The loans bear an initial interest rate of LIBOR plus 3.5% and include customary representations, warranties and covenants.
