Question-and-Answer Session
Operator
(Operator Instructions). Your first question will come from the line of Jonathan Schildkraut of Jefferies and Company. Please proceed.
Kevin Stanley - Jefferies and Company
Hi, guys. This is actually Kevin for Jonathan.
Keith Olsen
Yes. Hello, Ken. How are you?
Kevin Stanley - Jefferies and Company
Good. How are you?
Keith Olsen
Good. Thank you.
Kevin Stanley - Jefferies and Company
I just want to get a little more clarity around the New Jersey facility and the financing. You guys said that you expect to close it in May. What is -- is there a plan if that doesn't get done or the cost are little higher than you expect?
Keith Olsen
Yeah. Let me address first, we expect to close in March.
Kevin Stanley - Jefferies and Company
I'm sorry, March.
Keith Olsen
Yes. And I'll turn it over to George to respond to the cost for the pricing
George Pollock
Sure. Sure, Ken, this is George. We're confident that we'll close it in March and we have several commitments for our lead bank. We're in the process of completing documentation and running it out to close in March. And from a pricing perspective, I think as we all know, with the current status of the credit market the spread has certainly increase from last summer. However, the spread is also being offset by the fact that LIBOR is down materially since December. So the pricing is in line with our expectations and we continue to be very confident that this will close next month.
Kevin Stanley - Jefferies and Company
Okay. Is it possible for you guys to delay construction if it doesn't close on time?
George Pollock
Sure. We have a number of levers with respect to that the business in terms of CapEx and OpEx and to the extent that there was a delay, we're certainly can push that. Having said that, demand continues to be robust and we're on plan to continue our build throughout the year.
Kevin Stanley - Jefferies and Company
Okay. So I guess post closing about six months until the facility opens?
Keith Olsen
Post closing about six months. Yeah, that's the appropriate for the first phase. That is correct.
Kevin Stanley - Jefferies and Company
For Phase I. Okay. And how many cabinets were going to be in Phase I?
Keith Olsen
1,300 cabinets.
Kevin Stanley - Jefferies and Company
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