Internap Corporation (NASDAQ:INAP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
On June 29, 2017, Internap Corporation (the “Company”) entered into the Seventh Amendment to Lease Agreement by and between Digital 2121 South Price, LLC (the “Lessor”) and the Company (the “Seventh Amendment”). The Seventh Amendment was entered into on June 29, 2017 but is deemed to be effective as of May 1, 2017. The Seventh Amendment amends that certain Lease Agreement by and between the Lessor (as successor-in-interest to Mainrock II Chandler, LLC) and the Company originally entered into on June 15, 2007 (and subsequently amended on January 15, 2008, February 27, 2008, September 22, 2014, January 6, 2016, June 30, 2016 and March 24, 2017) covering a portion of the building located at 2121 South Price Road in Chandler, Arizona (as amended, the “Lease Agreement”).
The Seventh Amendment, among other things, provides for:
| · | extension of the term of the Lease Agreement for the leased premises until December 31, 2029; |
| · | leasing of additional locations of the premises until December 31, 2029; |
| · | environmental controls, electrical capacity and the base rent for certain portions of the leased premises; |
| · | the ability of the Company to extend the term of any of six specified portions of the leased premises or all of the leased premises via two extension options; and |
| · | other commercially standard terms and conditions. |
Unless otherwise modified or terminated in accordance with the terms of the Lease Agreement, the Company’s total obligations under the Lease Agreement are approximately $95 million through the expiration of the lease on December 31, 2029. The obligations under the Lease Agreement are not classified as indebtedness under the Company’s credit agreement, as amended.
The foregoing descriptions of the Seventh Amendment, the Lease Agreement and any amendments thereto do not purport to be complete and are qualified in their entirety by reference to such agreements, which will be filed with the Company’s next periodic report.
| Item 1.01 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information in Item 1.01 is incorporated by reference herein.
About Internap Corporation (NASDAQ:INAP)
Internap Corporation, formerly InterNAP Network Services Corporation, provides Internet infrastructure services. The Company operates through two segments: Data Center Services segment and Internet Protocol Services segment. It offers hybrid Internet infrastructure services, which enables customers to mix and match cloud, hosting and colocation for the combination of services. It also offers availability across a global network of data centers, and services backed by service level agreements (SLAs). The Company serves approximately 11,000 customers in various industries, including software and Internet; media and entertainment; business services; healthcare technology infrastructure, and telecommunications. Its Data Center Services segment includes colocation, hosting and cloud services. IP Services segment includes its performance IP service, content delivery network (CDN) services, IP routing hardware and software platform, and Managed Internet Route Optimizer Controller.
