Summary
Equinix, Inc. (EQIX) filed an 8-K on February 3, 2005, detailing a significant conversion event. On February 1, 2005, i-STT Investments Pte Ltd ("i-STT") converted its Series A-1 Preferred Stock, which was previously issued upon conversion of a substantial portion of outstanding A-1 Notes, into 4,144,216 shares of Equinix Common Stock. This conversion, effective February 2, 2005, effectively reduces Equinix's long-term debt and preferred stock obligations by approximately $38 million. This transaction significantly impacts Equinix's capital structure. The pro forma capitalization as of September 30, 2004, shows a notable increase in common stock shares outstanding, from 18.5 million to 22.6 million, and a decrease in shares reserved for the conversion of outstanding convertible secured notes from 3.9 million to 0.2 million. Investors should note this deleveraging event and the resulting dilution in common stock.
Key Highlights
- 1i-STT Investments Pte Ltd converted its Series A-1 Preferred Stock into 4,144,216 shares of Equinix Common Stock.
- 2The conversion is effective as of February 2, 2005.
- 3This event follows the earlier conversion of $38,035,206.53 of outstanding A-1 Notes held by i-STT into Series A-1 Preferred Stock.
- 4The conversion represents a deleveraging of the company's balance sheet by reducing debt and preferred equity.
- 5Pro forma common stock outstanding increased from 18.5 million to 22.6 million shares as of September 30, 2004.
- 6Pro forma shares reserved for conversion of outstanding convertible secured notes decreased significantly from 3.9 million to 0.2 million.