(Gawkwire.com) iWeb recently confirmed the completion of a new $3 million financing agreement with BMO Bank of Montreal, one of its major financial partners.
iWeb’s Chief Financial Officer, Philip Tousignant, announced that the increased facility will be used to finance the initial 3,000 servers provisioned in the Company’s new data center. Once it reaches capacity, iWeb’s fourth Montreal data center will have an estimated 20,000 dedicated servers online.
The $3 million credit facility is available in term loans, bearing interest of 4.25% as of today (prime rate plus 2%), payable in monthly instalments over 42 months. The agreement also includes a 0.5% reduction in the interest rate on the outstanding amount of the previous facilities (balance owed as at March 31, 2010 is $3.1 million). Finally, an additional facility for foreign exchange contracts is also included in this agreement.