July 12, 2010 (FinancialWire) — Savvis, Inc. (NASDAQ: SVVS), a St. Louis firm offering cloud infrastructure and hosted IT solutions for enterprises, said that it plans to enter into new senior secured credit facilities providing for borrowings of up to $625 million. BofA Merrill Lynch (NYSE: BAC) and Morgan Stanley Senior Funding (NYSE: MS) will act as joint lead arrangers and joint bookrunners in structuring and arranging the senior secured credit facilities.

According to Savvis, the facilities will consist of a $550 million term loan, maturing in 2016, and a $75 million revolving credit facility, maturing in 2014.

The company plans to use the net proceeds of the senior secured credit facilities, together with cash on hand, to repay existing indebtedness. This will include funding the repurchase of around $345 million in aggregate principal amount of the company's outstanding 3% convertible senior notes due May 2012, under the terms of the tender offer launched on July 1.

It will also include the repayment of outstanding amounts under the company's existing $150 million revolving credit facility and other bank and vendor financing, as well as any related fees and expenses.

Savvis said that any net proceeds of the senior secured credit facilities not used to repay existing indebtedness will be used for general corporate purposes.

Missouri-based Savvis offers cloud infrastructure and hosted IT solutions for enterprises.

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