REDWOOD CITY, Calif.,
Sept. 28, 2015 /PRNewswire/
-- Equinix, Inc. (Nasdaq: EQIX), the global interconnection
and data center company, today announced that its Board of
Directors has declared a special distribution of $627.0 million, or approximately $10.95 per share based on the number of shares
currently outstanding (the "2015 Special Distribution"), to its
common stockholders in connection with Equinix's conversion to a
real estate investment trust ("REIT") effective January 1, 2015.
The 2015 Special Distribution is in an amount that includes the
sum of: (1) estimated foreign earnings and profits repatriated as
dividend income to be recognized in 2015; (2) taxable income in
2015 from depreciation recapture in respect of accounting method
changes commenced in Equinix's pre-REIT period; and (3) certain
other items of taxable income. Equinix expects that the value of
the 2015 Special Distribution, plus all its other distributions
during 2015, will equal or exceed the taxable income that Equinix
expects to recognize in 2015.
The 2015 Special Distribution is payable on November 10, 2015 to Equinix's common
stockholders of record as of the close of business on October 8, 2015. Common stockholders can elect to
receive payment of the 2015 Special Distribution in the form of
stock or cash, with the total cash payment to all stockholders
limited to no more than $125.4
million, or 20% of the total distribution. The amount of
shares to be distributed will be determined based upon common
stockholder elections and the average closing price on the three
trading days commencing November 3,
2015. Election forms will be mailed or otherwise delivered
to all common stockholders promptly following the record date.
About Equinix
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. 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. Factors
that might cause such differences include, but are not limited to,
the challenges of acquiring, operating and constructing IBX centers
and developing, deploying and delivering Equinix services;
unanticipated costs or difficulties relating to the integration of
companies we have acquired or will acquire into Equinix; a failure
to receive significant revenue from customers in recently built out
or acquired data centers; failure to complete any financing
arrangements contemplated from time to time; competition from
existing and new competitors; the ability to generate sufficient
cash flow or otherwise obtain funds to repay new or outstanding
indebtedness; the loss or decline in business from our key
customers; and other risks described from time to time in Equinix's
filings with the Securities and Exchange Commission. In particular,
see Equinix's recent quarterly and annual reports filed with the
Securities and Exchange Commission, copies of which are available
upon request from Equinix. Equinix does not assume any obligation
to update the forward-looking information contained in this press
release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
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SOURCE Equinix, Inc.