Internap Network Services Corp. took on new debt to buy Voxel, the cloud services provider, for $30 million. The new Internap debt, disclosed in an SEC filing, reveals a high-stakes strategy to strengthen Internap’s cloud services strategy.
According to the SEC filing, Internap:
- increased its revolving credit facility by $20.0 million, for a total revolving credit facility of $60.0 million.
- increased its term loan facility by $20.0 million, for a total term loan facility of $59.0 million.
The total amount of loans available under the new Credit Agreement is $119.0 million. However, Internap used major chunks of that money to buy Voxel. The SEC filing states:
“Following the Amendment and the Voxel acquisition, [Internap] has fully drawn the term loan, issued approximately $10.0 million of letters of credit outstanding and has $50.0 million of available borrowings under the revolving credit facility.”
Among the lenders with whom Internap has been working working: Wells Fargo Capital Finance, LLC, Royal Bank of Canada, Silicon Valley Bank, Fifth Third Bank and Sun Trust Bank.
I realize: Sometimes you need to borrow money to make money — lots of money. But I’ll be curious to see how Internap services its debt even as the company strives for cloud services growth.
The 
