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Arsenal Reloads With $11M

Storage management services provider Arsenal Digital Solutions Worldwide Inc. today announced a debt financing round of $11 million, which it will use to expand its partners and services for managing growing data stores and compliance regulations.

The non-equity financing, led by RBC Centura, gives the Cary, N.C.-based company $21.5 million raised this year and a total of $86 million in equity and debt funding since its 1998 inception (see Arsenal Restocks Its Coffers).

Arsenal CEO Frank Brick says the company achieved positive EBITDA (earnings before interest, taxes, depreciation, and amortization) this year, and that the debt financing will provide working capital and infrastructure.

This is a positive sign of where we are on our maturity curve,” Brick stolidly maintains. “I’d much rather pay reasonable interest rates to accelerate growth than take equity, which does nothing but dilute people. This puts us on the fast trick to leverage market share.”

Brick says Arsenal experienced 60 to 70 percent revenue growth in 2003, and he expects it to continue to grow at that annual rate over the next three years. He is hoping to go public over that period.

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