Summary
Equinix, Inc. (EQIX) filed an 8-K on October 2, 2006, reporting a draw down of $40,000,000 from its $75,000,000 revolving credit facility. These borrowings, made on September 26 and September 29, 2006, were primarily used to fund capital expenditures and construction costs for data center expansions in Chicago and Washington D.C. This action was taken in anticipation of permanent financing arrangements. The company has $28,300,000 remaining available under the credit facility after these borrowings and considering outstanding letters of credit. The borrowings consist of $20,000,000 at the Prime Rate (8.75% interest) and $20,000,000 tied to a spread over one-month LIBOR (7.824% interest). This report provides insight into Equinix's short-term financing strategy to support growth initiatives.
Key Highlights
- 1Equinix drew down a total of $40,000,000 from its $75,000,000 revolving credit facility.
- 2The borrowings occurred on September 26, 2006 ($12,000,000) and September 29, 2006 ($28,000,000).
- 3The funds are designated for capital expenditures and construction costs related to data center expansions in Chicago and Washington D.C.
- 4This draw down is a temporary measure pending the completion of previously announced permanent financing arrangements.
- 5The remaining available borrowing capacity under the credit facility is approximately $28,300,000.
- 6The interest rates on the borrowings are 8.75% for $20,000,000 at the Prime Rate and 7.824% for $20,000,000 based on a spread over one-month LIBOR.