Content Delivery Network Company Highwinds Raises $205 Million In Debt
Highwinds is a content delivery network company that has raised $205 million in debt financing. Cerberus Business Finance and Goldman Sachs participated in the debt financing. This follows the investment made from equity investor General Catalyst. Launched in 2002, Highwinds offers low-cost delivery of file downloads and video streams. Highwinds decided to raise debt rather than equity financing so that they could maintain control and retain as much of the company as possible, according to TechCrunch.
“When you think about the most expensive type of capital to raise, it’s equity,” stated Highwinds CEO Steve Miller. “We didn’t want to end up like some of our competitors, who are having to raise equity financing so they could keep growing. We want to hold onto as much equity as we can.”
Highwinds has raised a total of $420 million in debt and equity financing since they launched. This is the largest amount raised by a content delivery network since Limelight Networks went public in 2007. Highwinds plans on using the funding to re-invest in their global content delivery network. They will also look at M&A and expand the capacity of their network.