Terremark Worldwide, Inc., an operator of Tier-1 Internet exchanges and network services, today announced that it has acquired from its partners all of the equity interests not owned by it in the entity that owns the Technology Center of the Americas (TECOTA), home of Terremark’s flagship NAP of the Americas.
Under the terms of the acquisition, Terremark paid $40 million for the equity interests in Technology Center of the Americas, LLC and repaid $35 million in debt. The Company financed the purchase from multiple sources. It obtained a $49 million first mortgage loan from Citigroup Global Markets Realty Corp. Simultaneously the Company issued $30 million in Senior Secured Notes and sold 3,060,444 shares of its common stock valued at $2 million to Falcon Investment Advisors, LLC and its co-investment partner AlpInvest Partners, a global private equity investor.
“With this purchase we have created a truly unique asset for our Company; we already owned one of the most important telecommunications exchange points in the world – the NAP of the Americas – and now we own one of the most highly connected buildings in the world – TECOTA,” stated Manuel D. Medina, Chairman and CEO of Terremark Worldwide Inc.
“We believe that this transaction is not only beneficial to the Company strategically, but also economically,” stated Jose A. Segrera, Chief Financial Officer of Terremark Worldwide, Inc. “By owning TECOTA, we have eliminated over $7.7 million of annual rent expense which offsets interest expense from the new debt, and have an additional 350,000 square feet of space ready for growth.”