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SEC Filings

10-Q
EQUINIX INC filed this Form 10-Q on 11/02/2018
Entire Document
 

timing of payments of our purchases and increases in cash paid for cost of revenues, operating expenses, interest expense and income taxes.
Investing Activities. The net cash used in investing activities for the nine months ended September 30, 2018 was primarily due to capital expenditures of $1,415.5 million as a result of our expansion activity, business acquisitions of approximately $829.2 million, primarily related to the Metronode Acquisition, purchase of investments of $55.2 million, and purchases of real estate of $136.6 million, partially offset by proceeds from sales of investments of $74.4 million and proceeds from asset sales of $12.2 million. The net cash used in investing activities for the nine months ended September 30, 2017 was primarily due to business acquisitions of approximately $3.6 billion, primarily the Verizon Data Center Acquisition, capital expenditures of $946.0 million as a result of our expansion activity, purchases of real estate of $65.0 million, partially offset by proceeds from asset sales of $47.8 million
In the second quarter of 2018, we completed the acquisitions of Metronode and Infomart Dallas. We also expect our IBX expansion construction activity will increase from 2017 levels. If the opportunity to expand is greater than planned and we have sufficient funding to pursue such expansion opportunities, we may further increase the level of capital expenditure to support this growth as well as pursue additional business and real estate acquisitions or joint ventures.
Financing Activities. The net cash provided by financing activities for the nine months ended September 30, 2018 was primarily due to (i) the issuance of €750.0 million 2.875% Euro Senior Notes due 2024, or approximately $929.9 million in U.S. dollars, at the exchange rate in effect on March 14, 2018; (ii) borrowing of the JPY Term Loan of ¥47.5 billion, or approximately $424.7 million at the exchange rate effective on July 31, 2018; (iii) sale of 631,522 shares under the ATM Program, for net proceeds of $273.9 million and (iv) proceeds from employee awards of $50.1 million. The proceeds were partially offset by (i) dividend distributions of $554.7 million; (ii) repayments of capital lease and other financing obligations of $89.7 million; (iii) repayments of mortgage and loans payable of $429.5 million, primarily related to the prepayment of the remaining principal of our existing Japanese Yen Term Loan; (iv) payments of debt extinguishment costs of $20.6 million and (v) payments of debt issuance costs of $12.2 million. The net cash provided by financing activities for the nine months ended September 30, 2017 was primarily related to funding the Verizon Data Center Acquisition; we borrowed the full amount of our €1.0 billion Term B-2 Loan, or approximately $1.1 billion at the exchange rate in effect on January 6, 2017, issued $1.25 billion of 5.375% senior notes due 2027, the issuance of €1.0 billion 2.875% Euro Senior Notes due 2025, approximately $1.2 billion at the exchange rate on September 20, 2017, and the sale of 6,069,444 shares of common stock in a public offering for net proceeds of $2.1 billion. Other financing activities included repayment of the entire $500.0 million principal amount of our 4.875% Senior Notes due 2020, dividend distributions of $463.9 million, debt issuance costs of $56.9 million, repayments of capital lease and other financing obligations of $60.3 million, and repayments of mortgage and loans payable of $63.5 million, partially offset by proceeds from employee awards of $41.6 million. Going forward, we expect that our financing activities will include repayment and refinancing of our existing debt and incremental financings needed to support expansion opportunities, additional acquisitions or joint ventures, and the payment of our regular cash dividends.

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