NewswireToday - /newswire/ -
Redwood City, CA, United States, 2014/12/18 - Equinix, Inc., the global interconnection and data center company, today announced the closing of its $1.5 billion five-year senior secured credit facility with a syndicate of eleven financial institutions - Equinix.com. NASDAQ: EQIX
The senior credit facility consists of a $1.0 billion senior secured multi-currency revolving credit facility and a $500.0 million amortizing senior secured term loan facility. Equinix borrowed the full amount of the $500.0 million term loan facility at closing.
A portion of the proceeds from the $500.0 million term loan facility was used by Equinix to refinance existing indebtedness (including indebtedness under Equinix’s former $750.0 million senior secured credit facility, which was terminated and replaced by the new $1.5 billion senior secured credit facility) and to pay fees and expenses incurred in connection with the closing of the senior credit facility. Equinix intends to use the remaining proceeds of the term loan facility and the proceeds of borrowings under the revolving credit facility for general corporate purposes, which may include capital expenditures, distributions to its stockholders (including distributions in connection with Equinix’s proposed conversion to a real estate investment trust), working capital and potential acquisitions and strategic transactions.
Bank of America Merrill Lynch, J. P. Morgan Securities LLC and TD Securities (USA) LLC acted as joint lead arrangers and book runners, JPMorgan Chase Bank, N.A. and TD Securities (USA) LLC acted as co-syndication agents, and Barclays Bank PLC, Citibank, N.A., Royal Bank of Canada and ING Bank N.V., Singapore Branch, acted as co-documentation agents for the senior credit facility. Bank of America, N.A is the administrative agent for the senior credit facility.
“We are pleased with the successful completion of this senior credit facility, which increases our liquidity position and enhances our ability to invest in our growth opportunities. We had high caliber financial institutions subscribing to this transaction and the strong demand and recognition for our credit is a testament to Equinix’s steady operating performance and credit strength,” said Keith Taylor, chief financial officer for Equinix.
Equinix, Inc. (equinix.com), connects more than 4,500 companies directly to their customers and partners inside the world's most networked data centers. Today, businesses leverage the Equinix interconnection platform in 32 strategic markets across the Americas, EMEA and Asia-Pacific.
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 Investor Relations Contact
Katrina Rymill - Equinix, Inc.
P: 650-598-6583 - E: krymill[.]equinix.com.
P: +1 650-598-6442 - E: pthomas[.]equinix.com.
Aris Lazdins - GolinHarris for Equinix, Inc.