Equinix increases senior notes offering to €1bn
Equinix (Nasdaq: EQIX) has announced that it has priced an offering of €1.0 billion aggregate principal amount of its senior notes due 2025 (the “notes”).
The offering has been upsised from the previously announced €750 million aggregate principal amount.
The offering is being made by means of a prospectus supplement and the accompanying prospectus under Equinix’s effective shelf registration statement with the U.S. Securities and Exchange Commission (the “SEC”).
The offering is expected to close on September 20, 2017, 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 2.875% per year. The notes will mature on October 1, 2025. The notes are redeemable by Equinix prior to maturity at a premium under certain circumstances.
Equinix expects the net proceeds from the offering to be approximately €988.3 million (or approximately $1,175.8 million), after deducting underwriting discounts and commissions and estimated offering expenses payable by it.
Equinix intends to use approximately €430.6 million (or approximately $512.2 million) of the net proceeds of the offering to redeem all of its outstanding 4.875% senior notes due 2020 (the “2020 Notes”) pursuant to the optional redemption provisions of the 2020 Notes, and the balance for general corporate purposes, which may include repayment of indebtedness, capital expenditures, working capital and acquisitions of complementary businesses or assets.
Barclays, BofA Merrill Lynch, J.P. Morgan and ING are acting as joint book-running managers, and RBC Capital Markets, Citigroup, TD Securities, HSBC, MUFG, Goldman Sachs & Co. LLC, US Bancorp and Wells Fargo Securities are acting as co-managers for the offering.