services in two of the most important markets in the world, providing comprehensive and seamless network
exchange and IT infrastructure services internationally.
Equinix will continue to operate under the existing Equinix senior
management team with Peter Van Camp as CEO. A new head of Asia-Pacific will be named at a later time. Equinix, i-STT and Pihana will assemble a transition team comprised of senior managers to ensure a seamless integration of the companies. Equinix
will remain headquartered in Mountain View, California. Asia-Pacific regional headquarters will be located in Singapore.
Terms of the Deal
As a part of the transaction, ST Telemedia will become the largest strategic shareholder in Equinix with a
contribution of the i-STT business and a cash investment of $30 million through the acquisition of Equinixs convertible debt. Approximately $23 million of the proceeds from this transaction will go towards retiring more than $130 million of
Equinixs debt, including approximately 80% of the companys outstanding Senior Notes and a further reduction of the credit facility. The remainder will be used to fund on-going operations. As a part of this transaction, the company also
expects to reset the loan covenants in its credit facility consistent with the anticipated future performance of the new company.
capitalization of the company post-closing and pre-conversion of the ST Telemedia convertible debt and warrants, will be as follows: existing Equinix shareholders will hold approximately 33% of the company; ST Telemedia will hold approximately 28%;
former Pihana Pacific stockholders will hold approximately 21%; and the former Senior Noteholders will hold approximately 18% of the outstanding Equinix stock.
Todays announcement underscores our ability to deliver business growth while significantly de-leveraging the business, said Van Camp. These agreements and the addition of ST Telemedia as a strong
strategic investor, results in a financially strengthened business with a healthy balance sheet for future business growth and a larger revenue base with the potential for strong EBITDA growth. With the completion of this transaction, Equinix is
well positioned to continue to execute