REDWOOD
CITY, Calif., May 23, 2024
/PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital
infrastructure company®, announced the pricing of an
underwritten public offering of $750
million aggregate principal amount of 5.500% Senior Notes due
2034 (the "Notes"). On an after-swapped basis to EUR, the
Notes are expected to carry an effective interest rate of
approximately 3.9%. The Notes will be issued by Equinix Europe 2
Financing Corporation LLC ("Equinix Europe 2 Finco"), a wholly
owned finance subsidiary of Equinix, Inc., and will be fully and
unconditionally guaranteed on an unsecured basis by Equinix, Inc.
The offering is expected to close on May 30,
2024, subject to the satisfaction of customary closing
conditions.
The Notes will be Equinix Europe 2 Finco's unsecured senior
obligations and will rank equal in right of payment to all of
Equinix Europe 2 Finco's existing and future unsecured and
unsubordinated indebtedness. Equinix, Inc.'s obligations under the
guarantee will rank equally with its other unsecured and
unsubordinated indebtedness.
Equinix estimates that the net proceeds from the sale of the
Notes, after deducting underwriting discounts and estimated
offering expenses payable by Equinix, will be approximately
$736 million. Equinix intends to use
the net proceeds from this offering to fund the acquisition of
additional properties or businesses, fund development
opportunities, and to provide for working capital and
other general corporate purposes, including but not limited to
refinancing of the upcoming maturities and for repayment
of existing borrowings. Equinix has $1
billion principal amount of outstanding U.S.-dollar
denominated Senior Notes due in November
2024, which Equinix had previously swapped from dollars to
Euros through cross-currency swaps.
Barclays, BNP Paribas, BofA Securities, Goldman Sachs & Co.
LLC, HSBC and J.P. Morgan are acting as joint book-running managers
for the offering. Citigroup, MUFG, RBC Capital Markets, Scotiabank,
Deutsche Bank Securities, ING, Morgan Stanley, Standard Chartered
Bank, SMBC Nikko and TD Securities are acting as bookrunners for
the offering. Mizuho Securities, PNC, Santander and US Bancorp are
acting as co-managers for the offering.
The offering of the Notes is being made pursuant to an effective
shelf registration statement, as amended (including a preliminary
prospectus supplement relating to the offering) filed with the
Securities and Exchange Commission (the "SEC"). A copy of the final
prospectus supplement and accompanying prospectus relating to the
offering of the Notes will be filed with the SEC and may be
obtained at no cost by visiting the EDGAR database on the SEC's
website at www.sec.gov. Alternatively, copies of the prospectus
supplement and the accompanying prospectus relating to the offering
of the Notes may be obtained, when available, by contacting
Barclays Capital Inc. at (888) 603-5847, BNP Paribas Securities
Corp. at +1 (800) 854-5674 (toll free), BofA Securities, Inc. at
1-800-294-1322 (toll free), Goldman Sachs & Co. LLC at
1-866-471-2526 (toll free), HSBC Securities (USA) Inc. at 1-866-811-8049 (toll free) or
J.P. Morgan Securities LLC at 1-212-834-4533.
This press release shall not constitute an offer to sell or a
solicitation of an offer to purchase the Notes or any other
securities and shall not constitute an offer, solicitation or sale
in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful. In addition, this press release is not
an offer to purchase or a notice of redemption with regard to any
securities.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure
company®. Digital leaders harness Equinix's trusted
platform to bring together and interconnect foundational
infrastructure at software speed. Equinix enables organizations to
access all the right places, partners and possibilities to scale
with agility, speed the launch of digital services, deliver
world-class experiences and multiply their value, while supporting
their sustainability goals.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties, including forward-looking
statements regarding Equinix's intended use of proceeds and
effective after-swap interest rate. 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, risks to our business and operating results
related to the current inflationary environment; foreign currency
exchange rate fluctuations; stock price fluctuations; increased
costs to procure power and the general volatility in the global
energy market; the challenges of acquiring, operating and
constructing IBX and xScale data centers and developing, deploying
and delivering Equinix products and solutions; unanticipated costs
or difficulties relating to the integration of companies we have
acquired or will acquire into Equinix; a failure to receive
significant revenues 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; risks related to our taxation as a REIT; risks related
to regulatory inquiries or litigation and other risks described
from time to time in Equinix filings with the Securities and
Exchange Commission. In particular, see recent and upcoming Equinix
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.
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SOURCE Equinix, Inc.