Equinix Announces Pricing of $1.5 Billion Public Offering of Senior Notes
REDWOOD CITY, Calif. -- February 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
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
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.
Equinix Investor Relations Contacts
Katrina Rymill, 650-598-6583
Samir Patodia, 650-598-6587
Equinix Media Contact:
Melissa Neumann, 650-598-6098
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