Rackspace Secures Credit Facility from Comerica Bank and JPMorgan Chase.SAN ANTONIO San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. -- Rackspace[R] Managed Hosting today announced that it has entered into a new revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. and term loan agreement with Comerica Bank and JPMorgan Chase JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. The company, headquartered in New York City, is one of the leaders in investment banking, financial services, asset and wealth management and private equity. With assets of $1. . The new $45 million credit facility may be used for temporary financing Temporary Financing The sum of negotiated current liabilities and temporary spontaneous current liabilities. arrangements, while the $25 million term loan may be tapped to finance capital expenditures related to customer growth, including new hardware agreements and data center build outs. "These facilities from Comerica and JPMorgan Chase provide Rackspace with growth capital to help support our forecasted expansions on attractive terms enabling us to further enhance our award winning Fanatical Support[TM]," said Major Horton, chief financial officer, Rackspace Managed Hosting. "As the company builds out facilities and expands into new markets, the revolver-based structure will enable the company to lower its cost of capital while also giving it the capability to pursue attractive business opportunities that are consistent with Rackspace's long-term strategy." "Comerica's Technology & Life Sciences Division has extensive experience in providing innovative debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay to growth companies like Rackspace with proven technology and strong management teams," said Tim Klitch, senior vice president, Technology & Life Sciences, Comerica Bank. "Comerica has a long-term relationship with Rackspace and it's exciting to watch their growth in the market." About Comerica Bank's Technology & Life Sciences Division Comerica Bank's Technology & Life Sciences Division is one of the nation's leading technology banking practices, offering a wide range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. tailored to corporate customers, entrepreneurs and professionals. Veteran bankers provide credit and financial services and products to young, growing, professionally backed technology and life sciences companies, as well as their more mature counterparts. The Technology & Life Sciences Division serves all major U.S. technology centers from offices coast-to-coast and its headquarters in Palo Alto Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif. Comerica Bank is a subsidiary of Comerica Incorporated (NYSE NYSE See: New York Stock Exchange :CMA CMA - Concert Multithread Architecture from DEC. ), a financial services company that is among the 25 largest banking companies in the U.S., with $58 billion in total assets at December 31, 2006. For more information, see www.comerica.com. About JPMorgan Chase & Co JPMorgan Chase & Co. (NYSE:JPM JPM J. P. Morgan Chase & Co. (stock symbol) JPM Juan Pablo Montoya (formula 1 driver) JPM Jabatan Perdana Menteri (Malaysia) JPM Journal of Property Management ) is a leading global financial services firm with assets of $1.4 trillion and operations in more than 50 countries. The company has more than 140 million credit cards issued. Under the JPMorgan and Chase brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients. Information about the firm is available at www.jpmorganchase.com. About Rackspace Managed Hosting A recognized leader in the global managed hosting market, Rackspace Managed Hosting delivers enterprise-level managed services to businesses of all sizes. Serving more than 10,000 customers in eight data centers worldwide, Rackspace integrates the industry's best technologies for each customer need and delivers it as a service via the company's award-winning Fanatical Support[TM]. Through trusted relationships, Rackspace serves as an extension of its customers' IT departments, enabling them to focus on their core business. Since its inception in 1998, Rackspace has grown more than 50 percent a year. For more information, please visit www.rackspace.com, or call 800-961-2888. |
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