Equinix Closes New $150 Million Revolving Credit Facility
October 06 2011 - 8:00AM
Business Wire
Equinix, Inc. (Nasdaq:EQIX), a provider of global data center
services, today announced that it has entered into a $150 million
unsecured revolving credit facility. The revolver, which has a
five-year maturity to September 2016, allows for borrowing,
repayments and re-borrowing over the entire five-year term and
provides a sublimit within the revolver for the issuance of letters
of credit of up to $100 million and swing line borrowings of up to
$25 million. Borrowings under the revolver carry an interest rate
of US$ LIBOR plus an applicable margin ranging from 1.25% to 1.75%
p.a., which varies as a function of the Company’s senior leverage
ratio. The Company is also subject to a quarterly non-utilization
fee ranging from 0.30% to 0.40% p.a., pricing of which will also
vary as a function of the Company’s senior leverage ratio.
The Company’s current cost of borrowing under the revolver is
1.99% p.a. which is comprised of the sum of US$ LIBOR rates of
0.24% p.a. and our current margin of 1.75% p.a. Additionally, the
Company may increase the size of the facility at its election by up
to $100 million, subject to approval by the Lenders and based on
current market conditions. The revolver consists of standard and
customary negative and financial covenants which the Company must
meet, including a leverage ratio, fixed charge coverage ratio and a
minimum net worth covenant.
Lenders in the Company’s revolver consist of a group of three
large U.S. banks, including Wells Fargo Bank, N.A. and HSBC Bank
USA, N.A.
“We are pleased with the successful completion of this credit
facility as it is validation of Equinix’s credit strength even in
this currently volatile credit environment,” said Keith Taylor,
chief financial officer for Equinix.
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners
and customers around the world through a global platform of high
performance data centers, containing dynamic ecosystems and the
broadest choice of networks. Platform Equinix connects more than
4,000 enterprises, cloud, digital content and financial companies
including more than 675 network service providers to help them grow
their businesses, improve application performance and protect their
vital digital assets. Equinix operates in 38 strategic markets
across the Americas, EMEA and Asia-Pacific and continually invests
in expanding its platform to power customer growth.
http://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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