8-KMaterial AgreementsFinancial EventsExhibits & Filings

EQUINIX INC 8-K Report, Material Agreement (Feb 6, 2007)

Filed February 6, 2007For Securities:EQIX

Summary

Equinix, Inc. (EQIX) announced on February 2, 2007, a significant development concerning the financing of a new IBX data center. A wholly-owned subsidiary, CHI 3, LLC, has secured a development loan of up to $110 million from SFT I, Inc. This facility is earmarked for the construction of a substantial 250,000 square foot data center in Elk Grove Village, Illinois. The loan has an initial three-year term and carries a floating interest rate tied to LIBOR plus a 2.75% margin. This strategic move signals Equinix's commitment to expanding its data center footprint and capacity to meet growing market demand. The company's Chief Financial Officer, Keith D. Taylor, signed off on the filing, underscoring the importance of this financing for Equinix's growth strategy.

Key Highlights

  • 1Equinix subsidiary CHI 3, LLC secured a Development Loan and Security Agreement for up to $110 million.
  • 2The loan is specifically for the development of a new ~250,000 sq ft IBX data center in Elk Grove Village, Illinois.
  • 3The loan has an initial term of three years.
  • 4The interest rate is a floating rate based on LIBOR plus 2.75%.
  • 5Equinix, Inc. has provided a Guaranty of Lease and an Environmental Indemnity Agreement, Guaranty, and Completion Guaranty in favor of the lender, demonstrating corporate support.
  • 6The lender, SFT I, Inc., has existing financial relationships with Equinix, including other loans and leases.
  • 7The filing was made on February 5, 2007, with the earliest event date reported as February 2, 2007.

Frequently Asked Questions

The $110 million loan is intended for the development, design, and construction of a new approximately 250,000 square foot IBX data center located in Elk Grove Village, Illinois.

The loan has an initial three-year term and bears interest at a floating rate of one, three, or six-month LIBOR plus 2.75%. It is evidenced by a loan agreement, promissory notes totaling $110 million, and a mortgage and security agreement.

Equinix, Inc. has entered into several agreements to support this development. It has provided a Guaranty of Lease for its subsidiary Op Co's lease obligations for the new data center and has also executed an Environmental Indemnity Agreement, Guaranty, and Completion Guaranty in favor of the lender, guaranteeing certain obligations of its subsidiary CHI 3, LLC.

The lender is SFT I, Inc. This entity, along with its affiliates, has prior business dealings with Equinix, including owning a data center in El Segundo, California, and unimproved land in San Jose, California, which are leased by Equinix's subsidiary Op Co. Additionally, the lender is a party to another loan with an Equinix subsidiary secured by property in Ashburn, Virginia.