Equinix Announces Pricing of $1.1 Billion Public Offering of Senior Notes
REDWOOD CITY, Calif., Nov. 19, 2015 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that it has priced an offering of $1.1 billion in aggregate principal amount of its 5.875% senior notes due 2026 (the "notes"). The offering is being made pursuant to an effective shelf registration statement (including a preliminary prospectus supplement and accompanying prospectus relating to the offering) on file with the Securities and Exchange Commission (the "SEC"). The offering is expected to close on December 4, 2015, 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 5.875% per year. The notes will mature on January 15, 2026. The notes are redeemable by Equinix prior to maturity at a premium under certain circumstances. If for any reason the Telecity Acquisition (defined below) is not completed on or prior to November 29, 2016, or if, prior to such date, the recommended cash and share offer for TelecityGroup (defined below) by Equinix set out in the Rule 2.7 announcement dated May 29, 2015 has lapsed or been withdrawn for the purposes of the U.K. City Code on Takeovers and Mergers, then Equinix will be required to redeem the notes.
The net proceeds to Equinix from this offering will be approximately $1.084 billion after deducting underwriting discounts and estimated offering expenses payable by it. Equinix intends to use the net proceeds of the offering, together with the net proceeds of the offering of $750.0 million of its common stock, the net proceeds of a proposed senior secured term loan that it intends to seek in an aggregate principal amount of up to approximately $700 million and cash on hand, for merger and acquisition activities and repayment of indebtedness (including the funding of the cash portion of the purchase price for the cash and share offer Equinix announced in May 2015 (the "Telecity Acquisition") for the entire issued and to be issued share capital of Telecity Group plc ("TelecityGroup") and repayment of existing TelecityGroup indebtedness in connection therewith) and for general corporate purposes. However, if for any reason the Telecity Acquisition is not completed on or prior to November 29, 2016, or if, prior to such date, the recommended cash and share offer for TelecityGroup by Equinix set out in the Rule 2.7 announcement dated May 29, 2015 has lapsed or been withdrawn for the purposes of the U.K. City Code on Takeovers and Mergers, then Equinix will be required to redeem the notes.
J.P. Morgan, BofA Merrill Lynch, Citigroup and RBC Capital Markets are acting as joint book-running managers for the offering and TD Securities, ING, HSBC and MUFG are acting as co-managers for the offering.
Equinix has filed a registration statement (including a preliminary prospectus supplement and accompanying 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 supplement and accompanying prospectus) for more complete information about Equinix and this offering. You may get the preliminary prospectus supplement and accompanying 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 c/o by calling 1-866-803-9204.
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.
Equinix, Inc. (Nasdaq: EQIX), connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. In 33 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.
Forward Looking Statements
This press release contains forward-looking statements that are based on Equinix management's current expectations. Such statements include plans, projections and estimates regarding an offering of common stock, an offering of notes and a proposed term loan, the Telecity Acquisition and the receipt and use of the proceeds from the common stock offering, the notes offering, and other proposed sources of proceeds. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including investor and lender demand, market conditions and other factors. In particular, there can be no assurance that Equinix will complete any portion of the proposed funding or the Telecity Acquisition. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors that could affect Equinix and its results is included in Equinix's filings with the SEC.
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SOURCE Equinix, Inc.
Released November 19, 2015