28 February 2013
Equinix Announces Pricing of $1.5 Billion Public Offering of Senior Notes
Redwood City, CA, February 28, 2013 – Equinix, Inc. (NASDAQ: EQIX), the global interconnection and data center company, today announced that it has priced an offering of $500 million aggregate principal amount of its 4.875% senior notes due 2020 (the “2020 Notes”) and $1,000 million aggregate principal amount of its 5.375% senior notes due 2023 (the “2023 Notes,” and, together with the 2020 Notes, the “Notes”), an increase in combined aggregate principal amount from the $1 billion offering of notes previously announced. The offering is being made pursuant to an automatically effective shelf registration statement (including a preliminary prospectus relating to the offering) on file with the Securities and Exchange Commission (SEC). The offering is expected to close on March 5, 2013, subject to customary closing conditions.
The notes will be Equinix’s general senior obligations and will rank equal in right of payment to all of its existing and future senior indebtedness. Interest will be payable semi-annually at a rate of 4.875% per year for the 2020 Notes and 5.375% per year for the 2023 Notes. The 2020 Notes will mature on April 1, 2020 and the 2023 Notes will mature on April 1, 2023. The Notes are redeemable by Equinix prior to maturity at a premium under certain circumstances.
The net proceeds to Equinix from this offering will be approximately $1.48 billion after deducting underwriting discounts and estimated offering expenses payable by it. Equinix intends to use the net proceeds from this offering to redeem its outstanding 8.125% Senior Notes due 2018 pursuant to the optional redemption provisions of such notes and for general corporate purposes, which may include capital expenditures, distributions to its stockholders in connection with its proposed conversion to a REIT, working capital and potential acquisitions and strategic transactions. Currently, however, Equinix does not have any agreements or understandings with respect to any such material strategic transactions or acquisitions.
J.P. Morgan, Barclays, Citigroup, BofA Merrill Lynch and Deutsche Bank Securities are acting as joint book-running managers and Evercore Partners, Goldman, Sachs & Co., HSBC, RBC Capital Markets and UBS Investment Bank are acting as co-managers for the offering.
Equinix has filed a registration statement (including a preliminary prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the registration statement (including the preliminary prospectus) for more complete information about Equinix and this offering. You may get the preliminary prospectus for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from J.P. Morgan Securities LLC at the following address: 383 Madison Avenue, 3rd Floor, New York, New York 10179 or by calling toll-free at: 800-245-8812.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward Looking Statements
This press release contains statements relating to the proposed offering of notes that are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether or not Equinix will consummate the offering, prevailing market conditions, the anticipated use of the proceeds of the offering, which could change as a result of market conditions or for other reasons.
Investors in Equinix are cautioned not to place undue reliance on its forward-looking statements, which speak only as of the date such statements are made. Equinix does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this press release, or to reflect the occurrence of unanticipated events.
Equinix and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc.