REDWOOD CITY, Calif.--(BUSINESS WIRE)--Feb. 28, 2013--
Equinix, Inc. (NASDAQ: EQIX), the global interconnection and data center
company, today announced that it has priced an offering of $500 million
aggregate principal amount of its 4.875% senior notes due 2020 (the “2020
Notes”) and $1,000 million aggregate principal amount of its 5.375%
senior notes due 2023 (the “2023 Notes,” and, together with the
2020 Notes, the “Notes”), an increase in combined aggregate
principal amount from the $1 billion offering of notes previously
announced. The offering is being made pursuant to an automatically
effective shelf registration statement (including a preliminary
prospectus relating to the offering) on file with the Securities and
Exchange Commission (SEC). The offering is expected to close on March 5,
2013, subject to customary closing conditions.
The notes will be Equinix’s general senior obligations and will rank
equal in right of payment to all of its existing and future senior
indebtedness. Interest will be payable semi-annually at a rate of 4.875%
per year for the 2020 Notes and 5.375% per year for the 2023 Notes. The
2020 Notes will mature on April 1, 2020 and the 2023 Notes will mature
on April 1, 2023. The Notes are redeemable by Equinix prior to maturity
at a premium under certain circumstances.
The net proceeds to Equinix from this offering will be approximately
$1.48 billion after deducting underwriting discounts and estimated
offering expenses payable by it. Equinix intends to use the net proceeds
from this offering to redeem its outstanding 8.125% Senior Notes due
2018 pursuant to the optional redemption provisions of such notes and
for general corporate purposes, which may include capital expenditures,
distributions to its stockholders in connection with its proposed
conversion to a REIT, working capital and potential acquisitions and
strategic transactions. Currently, however, Equinix does not have any
agreements or understandings with respect to any such material strategic
transactions or acquisitions.
J.P. Morgan, Barclays, Citigroup, BofA Merrill Lynch and Deutsche Bank
Securities are acting as joint book-running managers and Evercore
Partners, Goldman, Sachs & Co., HSBC, RBC Capital Markets and UBS
Investment Bank are acting as co-managers for the offering.
Equinix has filed a registration statement (including a preliminary
prospectus) with the SEC for the offering to which this communication
relates. Before you invest, you should read the registration statement
(including the preliminary prospectus) for more complete information
about Equinix and this offering. You may get the preliminary prospectus
for free by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, copies may be obtained from J.P. Morgan Securities LLC at
the following address: 383 Madison Avenue, 3rd Floor, New York, New York
10179 or by calling toll-free at: 800-245-8812.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of these securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
This press release contains statements relating to the proposed offering
of notes that are forward-looking statements pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements involve risks and uncertainties that could cause actual
results to differ materially, including, but not limited to, whether or
not Equinix will consummate the offering, prevailing market conditions,
the anticipated use of the proceeds of the offering, which could change
as a result of market conditions or for other reasons.
Investors in Equinix are cautioned not to place undue reliance on its
forward-looking statements, which speak only as of the date such
statements are made. Equinix does not undertake any obligation to
publicly update any forward-looking statements to reflect events,
circumstances or new information after this press release, or to reflect
the occurrence of unanticipated events.
About Equinix, Inc.
Equinix, Inc. (Nasdaq: EQIX), connects more than 4,000 companies
directly to their customers and partners inside the world’s most
networked data centers. Today, businesses leverage the Equinix
interconnection platform in 31 strategic markets across the Americas,
EMEA and Asia-Pacific.
Equinix and IBX are registered trademarks of Equinix, Inc. International
Business Exchange is a trademark of Equinix, Inc.
Source: Equinix, Inc.
Equinix Investor Relations Contacts
Melissa Neumann, 650-598-6098