Iron Mountain has a $400 million revolver expiring next January and will be proactive about refinancing the credit, which also includes a $250 million "B" term loan that expires in 2008. "We will get ahead of the issue," said Jeff Lawrence, treasurer for Iron Mountain. "We are always opportunistic in the way that we approach our financing," he added.
"One of the hallmarks of our business is our predictability. We are able to put in long term-capital to finance our business," said Lawrence. The company's stakeholders appreciate the predictability of its cash flows, he added. A number of advisors have already approached Iron Mountain, informing the company about the current hot market conditions. The company has not committed to a timeframe for when it will select a lead bank.
One of the advisors is J.P. Morgan, also the lead on Iron Mountain's credit. Lawrence noted that "global reach" and a "breadth of capabilities" are important characteristics of the company's lead bank. The firm must be a strong force in the bank market and the senior credit market, but must also be capable in other forms of finance.
Finally, the bank must have the ability to be responsive and loyal. Iron Mountain entered into its relationship with J.P. Morgan in 1991 and has found the firm to be a very supportive agent. Lawrence said he did not have a particular point of view on J.P. Morgan's merger with Bank One.
Lawrence noted the current facility "generally meets our needs pretty well." The most significant waiver that Iron Mountain pursued was one that allowed the company to purchase the European operations of Hays IMS. Lawrence said the bank group turned around approval for the waiver within 72 hours of the request. Iron Mountain's existing revolver is also a multi-currency denominated piece, but the company has not seriously considered tapping the institutional loan market in Europe. The company did recently, however, issue its debut debt offering in Europe with a private placement of £150 million, 71/4% senior subordinated notes. Iron Mountain's existing revolver is currently priced at LIBOR plus 2% and the term loan "B" is priced at LIBOR plus 21/4%.