MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services assigned its
'B' corporate credit rating to California-based data center operator Equinix
Inc. It also assigned a 'CCC+' rating to the company's 250 mln usd
convertible subordinated notes due 2012 and proposed 300 mln usd convertible
subordinated notes due 2014.
The outlook is positive.
Proceeds from the proposed 300 mln usd note issue and an expected 300 mln
usd stock offering will be used to fund the estimated 550 mln usd acquisition of
IXEurope.
"The notes are rated two notches below the corporate credit rating due to
the substantial concentration of priority obligations in the capital structure,"
the agency said.
It added the ratings reflect the significant risks of this
capital-intensive, highly competitive industry niche, coupled with aggressive
leverage.
TFN.newsdesk@thomson.com
ans/jro
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