equinix inc (EQIX) Key Developments
Equinix, Inc. to Open New International Business Exchange Data Center in Dallas
Oct 7 15
Equinix, Inc. announced that it will open a new International Business Exchange data center in Dallas later this year. The new IBX, called DA7, will support growing demand for interconnection in the Dallas/Fort Worth metropolitan area, one of Equinix's most network-dense locations. Equinix will invest approximately $20 million in the DA7 facility, which includes an initial phase of 300 cabinets with 800 additional cabinets expected by Second Quarter 2016. At full build the site will have approximately 40,000 sq ft of total colocation space and Equinix's total Dallas footprint will exceed 214,000 square feet of colocation space across six data centers. Equinix's Dallas data centers house over 100 network service providers more than any other data center providers or buildings in the Dallas metro area providing network choice and connectivity for 40+ cloud service providers and 30 content and digital media companies including Adobe, AOL, AT&T, China Telecom, Cisco Systems, Comcast, Cox Communications, Level 3 Communications, Sprint, Tata, TeliaSonera, Telefonica, Time Warner Cable, Walmart, XO Communications and Zayo.
Equinix, Inc. Announces Support for New FASTER Sub-Sea Cable System
Oct 2 15
Equinix, Inc. has announced support for the new FASTER sub-sea cable system. The cable will be backhauled in to four of Equinix's International Business Exchange (IBX) data centers on the West Coast of the US including Silicon Valley, Los Angeles and Seattle, to Chikura and Shima in Japan. FASTER will feature the latest high-quality 6-fiber-pair cable and optical transmission technologies, with an initial design capacity of 60Tb/s (100Gb/s x 100 wavelengths x 6 fiber-pairs). This new cable system will be landed at Chikura and Shima in Japan and will feature seamless connectivity to many neighboring cable systems to extend the capacity beyond Japan to other Asian locations. The FASTER cable system has the large design capacity ever built on the Trans-Pacific route, which is one of the longest routes in the world. By connecting to Equinix data centers, FASTER and its users can leverage Equinix's mature business ecosystems and interconnection platform Platform Equinix which connects more than 6,300 global businesses in 33 markets around the globe. By providing this increased capacity, Equinix expands its role in advancing the digital economy's interconnected era, in which businesses are demanding increasing levels of interconnection to accelerate business performance. The FASTER consortium is comprised of six parties, including China Mobile International, China Telecom Global, Global Transit, Google, KDDI and Singtel. The system is expected to begin operating during the second quarter of 2016.
Equinix, Inc. and Qaon G.K. Enters into Term Loan Agreement with the Bank of Tokyo-Mitsubishi UFJ, Ltd
Oct 1 15
On September 30, 2015, QAON G.K. and certain other direct and indirect subsidiaries of Equinix, Inc. as borrowers, entered into a Term Loan Agreement with The Bank of Tokyo-Mitsubishi UFJ Ltd. Pursuant to the Bridge Loan Agreement, BTMU has committed to provide a senior bridge term loan facility (the Bridge Loan) in the amount of up to JPY 47,500,000,000 (or approximately USD 395,833,000 at prevailing exchange rates in effect on September 30, 2015), to be advanced by BTMU in three tranches. Proceeds of the Bridge Loan shall, subject to customary conditions precedent, be available to be used to fund the cash consideration to be paid by QAON G.K. for the shares and the stock acquisition rights of Bit-isle Inc. (Bit-isle) that are tendered pursuant to the tender offer by QAON G.K. to acquire 100% of the shares of Bit-isle announced by Equinix in its September 8, 2015 press release (the Tender Offer), to repay existing debt of Bit-isle and its wholly-owned subsidiaries, to fund the cash consideration to be delivered to the shareholders and holders of stock acquisition rights of Bit-isle in connection with certain procedures under Japanese law to acquire the remaining shares and stock acquisition rights of Bit-isle that are not tendered pursuant to the Tender Offer and to pay transaction costs incurred in connection with the closing of the Bridge Loan and the acquisition of Bit-isle. In addition, Equinix and certain of its direct and indirect subsidiaries are each required to guaranty the obligations of the borrowers under the Bridge Loan Agreement. The Bridge Loan Agreement contains covenants and events of default that are customary for loan facilities of this type. The Bridge Loan matures one year after the borrowing of the first tranche of the Bridge Loan, at which time all amounts outstanding under the Bridge Loan must be repaid in full. Borrowings under the Bridge Loan will bear interest at the Tokyo Interbank Offered Rate for Japanese Yen, plus a margin of 0.4% per annum for the first ten months following the borrowing of the first tranche of the Bridge Loan, which margin increases to 1.75% per annum thereafter. Equinix anticipates refinancing the Bridge Loan with long-term debt prior to the end of the ten-month period following the initial borrowing of the Bridge Loan.
Equinix Declares Special Distribution, Payable on Nov. 10, 2015
Sep 28 15
Equinix said that its board of directors has declared a special distribution of $627 million, or about $10.95 per share based on the number of shares currently outstanding to its common stockholders. The special dividend is in connection with Equinix's conversion to a real estate investment trust (REIT) effective Jan. 1, 2015. This is payable on Nov. 10, 2015 to Equinix's common stockholders of record as of the close of business on Oct. 8, 2015.
Equinix to Expand Data Centre in Melbourne
Sep 18 15
Equinix announced that it will be investing an additional AUD 28 million to expand ME1, its Melbourne-based International Business Exchange (IBX) data centre. The data centre also hosts over 250 cloud and IT companies, including Microsoft Azure under a deal announced in May. In April, the company announced it will be investing more than AUD 97 million into building its fourth data centre in Sydney.