Global Switch Signs New Revolving Credit Facility

Global Switch Signs New Revolving Credit Facility

Release date: 01.06.2022
  • Successful closure of a new £350 million revolving credit facility
  • Attractive terms, including a three-year duration with options to extend and a sub 1% margin
  • Further supports Global Switch’s growth and provides ongoing liquidity

Global Switch Holdings Limited (“Global Switch” or “the Company”) the leading owner, operator and developer of large scale, carrier and cloud neutral data centres in Europe and Asia-Pacific, today announces that it has closed a new revolving credit facility (“RCF”) with HSBC Bank plc as Agent.

Deutsche Bank and HSBC - who were lenders under the previous RCF - remain as lenders and mandated lead arrangers under the new RCF. Global Switch is also pleased to announce that Santander, DBS Bank and BNP Paribas have joined the syndicate as lenders and mandated lead arrangers under the new RCF.

The new RCF, signed on 31 May 2022, is on highly attractive terms for Global Switch. The £75 million decrease in the size of the facility reduces ongoing cost and reflects Global Switch’s strong liquidity position following the 2020 bond issue and £411 million of available cash reserves as at 31 December 2021. The committed facility term matures on 31 May 2025, with the option of two further one-year extensions. The margin on the new facility is the same as for the previous facility, at sub 1%, thus enabling Global Switch to continue to deliver value for money solutions for its customers as well as superior returns for its shareholders. Financial covenants, where the company retains significant headroom, have been reduced to give greater consistency with the company’s outstanding bond issues. The new RCF will be used to provide liquidity in addition to the Company’s existing substantial cash balances.

The commitment of the participating banks on these terms reflects the strength of Global Switch’s business and its continued low leverage, as reflected in its industry-leading credit ratings.

Global Switch reviewed the terms of its previous RCF due to the expiry of the previous facility which had been put in place in 2017.

John Corcoran, Chief Executive Officer of Global Switch, said:

“The successful closure of this RCF is evidence of the ongoing strength of our business model and balance sheet. The highly attractive terms provide us with certainty and flexibility, enabling us to continue to provide value for money solutions for our customers, as well as attractive returns for our shareholders.”

David Doyle, Chief Financial Officer of Global Switch, added:

“We are delighted to confirm the continuing long-term support of HSBC and Deutsche Bank, and are particularly pleased to welcome Santander, DBS Bank and BNP Paribas as new lenders under the RCF. We remain committed to maintaining low leverage and our current strong investment grade credit ratings.”

Contact details:

Jenny Davey
Finsbury Glover Hering
+44 20 7251 3801

Ali Ballantine
Group Director, Brand and Communications
Global Switch
+44 20 8054 9053

Notes to editors:

About Global Switch
Global Switch is a leading owner, operator and developer of large-scale, carrier and cloud neutral, multi-customer data centres in Europe and Asia-Pacific. Founded in 1998, Global Switch has a proven business model, demonstrable track record and is one of the highest credit rated data centre companies in the world with investment grade credit ratings from Fitch Ratings, Moody’s and S&P Global Ratings.

Global Switch is a vital strategic partner for customers that require secure and resilient data centre services with scalable capacity and a high-level of customer service. The Company's focus is on highly resilient, central, low latency, network dense locations in prime city centre locations and internet hubs close to its customers on the edge of financial and business districts. Global Switch’s data centres operate exclusively in the Tier I markets of Europe and Asia-Pacific to Tier III or higher and currently total around 428,000 sq m (4,600,000 sq ft) of floor space and are occupied by a broad range of customers, global and national, large and small including government organisations, financial institutions, enterprises, global systems integrators, telecommunication carriers, cloud and managed service providers and other hosting businesses.

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