REDWOOD CITY, Calif., Oct 02, 2013 (BUSINESS WIRE) --Equinix,
Inc. (Nasdaq: EQIX), the global interconnection and data
center company, today announced it has amended its senior secured
credit facility comprised of a $550,000,000 multi-currency revolving
credit facility and a $200,000,000 term loan facility. These amendments
are an important step in preparing the company for its proposed
conversion to a Real Estate Investment Trust (REIT) in January 2015.
Equinix amended the credit facility to allow the company greater
flexibility to make pre-REIT conversion purge distributions and
post-REIT conversion cash dividends necessary to comply with REIT rules
and regulations if the company is successful in its REIT conversion. The
company also amended certain financial covenants to provide greater
In addition, an accordion feature has been included to allow Equinix to
request an increase in the aggregate amount available to be borrowed
under the revolving credit facility by an additional $250,000,000, for a
total of $800,000,000 in revolving credit availability, subject to
certain conditions and the receipt of lender commitments. Equinix’s cost
of borrowing under the credit facility remains unchanged and is based on
the company’s election of a floating interest rate based on the prime
rate or LIBOR plus an applicable margin which varies based on the
company’s senior leverage ratio. The credit facility has a maturity date
of June 2017. Merrill Lynch, Pierce, Fenner & Smith Incorporated is lead
arranger, with Bank of America, N.A. as administrative agent for the
“With these positive amendments and enhanced flexibility to our credit
facility, we continue to undertake key steps to strengthen our balance
sheet and position ourselves for our proposed REIT conversion which is
expected to take place in January 2015,” said Keith Taylor, chief
financial officer for Equinix.
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. www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties. Actual results may differ materially from
expectations discussed in such forward-looking statements. For
additional information and risks relating to Equinix’s proposed
conversion to a REIT see Equinix’s Quarterly Report on Form 10-Q filed
July 26, 2013, including under the section captioned “Item 1A. Risk
Factors - Risks Related to REIT Conversion.” Equinix does not
assume any obligation to update the forward-looking information
contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
SOURCE: Equinix, Inc.
Equinix Media Contact
Melissa Neumann, +1-650-598-6098
Investor Relations Contact
Katrina Rymill, +1-650-598-6583