REDWOOD CITY, Calif.,
Jan. 9 , 2017 /PRNewswire/ --
Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data
center company, today announced it has borrowed the full €1.0
billion in additional senior secured term B loans ("the Term B-2
Loans") as previously announced by Equinix in its Form 8-K filed
December 27, 2016. The Term B-2 Loans
bear interest at a rate equal to EURIBOR plus a margin of 3.25%.
Equinix expects to use the proceeds of the Term B-2 Loans to
pay a portion of the purchase price for Equinix's acquisition of a
portfolio of data center sites and their operations from Verizon
Communications Inc., as previously announced by Equinix in its Form
8-K filed December 6, 2016.
In addition to the €1.0 billion borrowing, Equinix decreased the
borrowing cost of its existing senior secured term loan B facility
(the "Term B-1 Facility") effective December
22, 2016. The interest rate margin applicable to the
loans borrowed under the Term B-1 Facility in US Dollars (of which
$248,125,000 were outstanding as of
December 31, 2016) was reduced from
3.25% to 2.50% and the LIBOR floor applicable to such loans was
reduced from 0.75% to zero. The interest rate margin
applicable to the loans borrowed under the Term B-1 Facility in
Pounds Sterling (of which £297,750,000 were outstanding as of
December 31, 2016) was reduced from
3.75% to 3.00%, with no change to the existing LIBOR floor of 0.75%
applicable to such loans.
Bank of America Merrill Lynch acted as left lead arranger for
the transactions.
Keith Taylor, Chief Financial
Officer, Equinix:
"Our ability
to opportunistically access the European debt markets has
enabled Equinix to secure low-cost, long-term funds for a
portion of Equinix's purchase of Verizon's data
center sites and operations. This Euro-denominated
debt also provides a natural hedge to protect the economic value of
our European investments. Also, we're delighted with the
quality of investors that participated in
this debt transaction and will work expeditiously to
finance the remaining portion of the acquisition cost related to
the Verizon asset acquisition."
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 40 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.