Equinix Amends Senior Credit Facility
REDWOOD CITY, Calif.--(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 operational flexibility.
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 credit facility.
“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.
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Source: Equinix, Inc.
Released October 2, 2013