PEER 1 Network Enterprises, a leading provider of IT infrastructure, has announced that it has completed the acquisition of all outstanding shares in the capital of NetBenefit (UK) Limited.

Founded in 1995, NetBenefit is a division of London-based Group NBT Limited and is one of the UK's longest-operating and most experienced providers of managed hosting services to small and medium sized businesses. NetBenefit has approximately 50 employees providing nearly 700 customers with hosting solutions and professional 24 x 7 x 365 technical support, provisioned and deployed principally from two leased data centers located in the Greater London area. Following the acquisition, NetBenefit will provide managed hosting services back to Group NBT under a three year contract valued at approximately £1.5 million per year. 

PEER 1has also entered into a credit agreement with a syndicate of lenders led by National Bank of Canada, and including HSBC BankCanada, HSBC Bank PLC, GE Canada, Business Development Bank, Bank of America, Laurentian Bank of Canada and Canadian Western Bank, for a US$100 million non-revolving term facility and a US$50 million revolving credit facility.

The four-year non-revolving term facility has a principal amount of US$100 million, all of which has been drawn at closing and will be used to repay all indebtedness under the Company's previous credit facilities and fund the acquisition of NetBenefit. The four-year revolving credit facility has a principal amount of US$50 million, none of which has been drawn at closing, and
will be available for general corporate purposes, and permitted acquisitions and distributions