REDWOOD CITY, Calif.,
March 8, 2017 /PRNewswire/ --
Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data
center company, today announced the pricing of concurrent public
offerings of 5,277,778 shares of its common stock at a price to the
public of $360.00 per share (the
"Equity Offering") and $1.25 billion
in aggregate principal amount of its 5.375% Senior Notes due 2027
(the "Notes Offering"). In addition, Equinix has granted the
underwriters of the Equity Offering a 30-day option to purchase up
to an additional 791,666 shares of its common stock. The Equity
Offering and the Notes Offering are separate public offerings made
by means of separate prospectus supplements under Equinix's
effective shelf registration statement and are not contingent on
each other or upon the completion of the Acquisition discussed
below. All of the shares of the common stock and notes to be sold
in the offerings are offered by Equinix. The Equity Offering is
expected to close on March 14, 2017
and the Notes Offering is expected to close on March 22, 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 5.375% per year. The notes will mature on May 15, 2027. The notes are redeemable by Equinix
prior to maturity at a premium under certain circumstances.
Equinix expects the net proceeds from the Equity Offering to be
approximately $1.845 billion (or
approximately $2.122 billion if the
underwriters exercise their option to purchase additional shares in
full) and the net proceeds from the Notes Offering to be
approximately $1.236 billion, in
each case, after deducting underwriting discounts and commissions
and before estimated offering
expenses. Equinix intends to use the net proceeds of the
Equity Offering and the Notes Offering and existing term loan B
borrowings of approximately $1.053
billion to finance the previously announced proposed
acquisition of the colocation services business of Verizon
Communications Inc. at 24 data center sites in the United States, Brazil and Colombia (the "Acquisition") and related
transaction fees and expenses and for general corporate
purposes. However, if for any reason the Acquisition is not
completed, then Equinix intends to use all of the net proceeds from
the Equity Offering for general corporate purposes. In addition, if
for any reason the Acquisition is not completed on or prior to
December 6, 2017, or if, prior to
such date, the transaction agreement relating to the Acquisition is
terminated, then in either case Equinix will be required to redeem
the notes at par.
J.P. Morgan, BofA Merrill Lynch, Goldman, Sachs & Co., RBC
Capital Markets, Barclays and Citigroup are acting as joint
book-running managers and ING, MUFG, TD Securities, HSBC, BTIG and
Evercore ISI are acting as co-managers for the Equity Offering.
J.P. Morgan, BofA Merrill Lynch, RBC Capital Markets, Barclays,
Goldman, Sachs & Co., MUFG and TD Securities are acting as
joint book-running managers and ING, HSBC and US Bancorp are acting
as co-managers for the Notes Offering.
Equinix has filed a registration statement (including a
preliminary prospectus supplement for each offering and
accompanying prospectus) with the Securities and Exchange
Commission (the "SEC") for the Equity Offering and the Notes
Offering to which this communication relates. Each offering may be
made only by means of a prospectus supplement relating to such
offering and the accompanying prospectus. Before you invest, you
should read the registration statement (including the preliminary
prospectus supplement for each offering and accompanying
prospectus) for more complete information about Equinix, the Equity
Offering and the Notes Offering. You may get a preliminary
prospectus supplement for either offering and accompanying
prospectus for free by visiting EDGAR on the SEC website at
www.sec.gov. Alternatively, copies of the preliminary prospectus
supplement and accompanying prospectus relating to the Equity
Offering may be obtained from J.P. Morgan Securities LLC, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, Attention
Prospectus Department, or by calling 1-866-803-9204, or BofA
Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor,
Charlotte, NC 28255-0001,
Attention: Prospectus Department, or e-mail
dg.prospectus_requests@baml.com, or Goldman, Sachs & Co.,
Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526,
facsimile: 212-902-9316 or by emailing
prospectus-ny@ny.email.gs.com.
Copies of the preliminary prospectus supplement and accompanying
prospectus relating to the Notes Offering may be obtained from J.P.
Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY
11717, Attention Prospectus Department, or by calling
1-866-803-9204, or BofA Merrill Lynch, NC1-004-03-43, 200 North
College Street, 3rd floor, Charlotte,
NC 28255-0001, Attention: Prospectus Department, or
e-mail dg.prospectus_requests@baml.com.
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 41
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 the Equity Offering, the
Notes Offering, the Acquisition, and the receipt and use of the
proceeds from the Equity Offering and the Notes Offering.
Such forward-looking statements are subject to certain risks,
uncertainties and assumptions, including investor demand, market
conditions, customary closing conditions and other factors.
In particular, there can be no assurance that Equinix will complete
the Equity Offering, the Notes Offering or the 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. Equinix does not assume
any obligation to update the forward-looking information contained
in this press release.
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SOURCE Equinix, Inc.