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by Equinix set out in the Rule 2.7 announcement dated May 29, 2015 has lapsed or been withdrawn for the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.
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.
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.