REDWOOD CITY, Calif.,
May 4, 2021 /PRNewswire/ -- Equinix,
Inc. (Nasdaq: EQIX), the world's digital
infrastructure company, today announced that it priced
$2.6 billion principal amount of
notes, including $1.0 billion of
green bonds in its third green bond offering. The green bonds will
be used to help advance the company's longstanding commitment to
sustainability leadership and reducing its environmental impact.
The offering is expected to close on May 17,
2021, subject to the satisfaction of customary closing
conditions.
The $700 million 1.450% Senior
Notes due 2026, $400 million 2.000%
Senior Notes due 2028, $1.0 billion
2.500% Senior Notes due 2031, and $500 million 3.400% Senior
Notes due 2052, have a weighted average coupon of 2.313%. A portion
of the proceeds will be used to refinance our 5.375% Senior Notes
due 2027 and a portion of our Term Loan Facility, which we expect
to result in approximately $38
million of annual interest savings. This will further
improve Equinix's weighted average cost of debt of 2.06% and extend
its weighted average debt maturity of 8.2 years, as reported for
the period ending March 31, 2021.
Equinix intends to allocate an amount equal to the net proceeds
from the green bonds to finance or refinance, in whole or in part,
recently completed or future Eligible Green Projects, with
disbursements covering project expenditures for up to two years
preceding the issuance date of the green bonds and until and
including the maturity date of the green bonds, including the
development and redevelopment of such projects.
Pending the allocation of an amount equal to the net proceeds
from the offering of the green bonds to Eligible Green Projects, we
expect to temporarily use the net proceeds from the offering of the
green bonds for the repayment of a portion of our Term Loan
Facility and the redemption our 5.375% Senior Notes due 2027,
including the payment of the premium and accrued and unpaid
interest to the redemption date.
For the offering of the notes, BofA Securities, Inc., Goldman
Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG Securities
Americas Inc. and SMBC Nikko Securities America, Inc. served as
joint bookrunning managers.
Highlights/Key Facts
- Equinix has developed a Green Finance Framework based on
the Green Bond Principles and Green Loan Principles, a set of
guidelines that promote transparency and integrity in, and advance
the standardization of, green debt disclosures. As outlined in
Equinix's Green Finance Framework, an amount equal to the net
proceeds of the green bonds will be allocated to finance or
refinance, in whole or in part, recently completed or future
Eligible Green Projects in categories such as green buildings,
renewable energy, energy efficiency, sustainable water and
wastewater management, waste management and clean transportation
that are expected to deliver benefits to Equinix and its
shareholders. The Framework will increase Equinix's focus on
protecting the environment and addressing global climate change
through greenhouse gas emissions reductions, increasing resource
efficiency and driving corporate transparency and
accountability.
- Equinix recently received an A- score for its CDP Climate
Change Survey, a leading environmental rating system focused on
climate-related transparency and action, recognizing the company's
contribution to helping advance the development of the nation's
green power market, and its commitment to reach 100% clean and
renewable energy across its portfolio.
- Equinix continues to advance its green initiatives through its
recent support of the new Climate Neutral Data Centre Operator
Pact and Self-Regulatory Initiative. The Pact marks the first time
the data center industry has come together to solidify its
commitment to ensure that European data centers are carbon neutral
by 2030.
Quote
- Keith Taylor, Chief Financial
Officer, Equinix
"With our third green bond issuance
today, we continue to strengthen our longstanding environmental
commitments, both aligning our sustainability strategy with our
financing needs and bolstering our sustainability
initiatives."
This press release shall not constitute an offer to sell or a
solicitation of an offer to purchase the bonds 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
outstanding notes or any other securities.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure
company, enabling digital leaders to harness a trusted platform to
bring together and interconnect the foundational infrastructure
that powers their success. Equinix enables today's businesses to
access all the right places, partners and possibilities they need
to accelerate advantage. With Equinix, they can scale with agility,
speed the launch of digital services, deliver world-class
experiences and multiply their value.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on Equinix's current expectations, including statements
regarding the offering of the bonds, interest savings from the
offering of the bonds, its sustainability objectives, the receipt
and use of the net proceeds from the offering of the bonds and the
consummation of any redemptions of outstanding notes or repayment
of the Term Loan Facility. Such forward-looking statements are
subject to certain risks, uncertainties and assumptions, including
market conditions, customary closing conditions and other factors.
In particular, there can be no assurance that Equinix will complete
the offering of the bonds. 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.