Summary
Equinix, Inc. (EQIX) has filed an 8-K report detailing the successful closing of a $250 million offering of 2.50% Convertible Subordinated Notes due 2012. This offering, which included an over-allotment of $30 million, was executed through an underwriting agreement with Citigroup Global Markets Inc. and other underwriters. The notes mature on April 15, 2012, and bear a relatively low annual interest rate of 2.50%. Crucially for investors, these notes are convertible into Equinix common stock at an initial conversion rate of 8.9259 shares per $1,000 principal amount, equivalent to a conversion price of approximately $112.03 per share. This convertible feature presents an opportunity for potential upside participation in Equinix's stock performance. The notes are unsecured and subordinated, meaning they rank below senior debt in the event of liquidation. The company also has the option to redeem the notes under specific conditions and holders can demand repurchase upon a fundamental change.
Key Highlights
- 1Equinix successfully closed a $250 million offering of 2.50% Convertible Subordinated Notes due 2012.
- 2The offering included an additional $30 million purchased by underwriters exercising an over-allotment option.
- 3Notes are convertible into Equinix common stock at an initial conversion price of approximately $112.03 per share.
- 4The notes carry a 2.50% annual interest rate and mature on April 15, 2012.
- 5The company can redeem the notes on or after April 16, 2010, under certain conditions.
- 6Holders have the right to require repurchase upon a 'fundamental change'.
- 7The notes are unsecured and subordinated to senior debt.