What is the purpose of this new credit facility?

The credit facility is intended to finance capital expenditures for expanding Equinix's IBX data centers in Singapore and Tokyo, which are crucial hubs for digital infrastructure in the Asia Pacific region.

What is the total value and currency of the credit facility?

The facility is for approximately $40,000,000 in local currency equivalents. Specific amounts include up to 23,000,000 Singapore dollars and 2,932,500,000 Japanese yen during the first 12 months.

What are the terms of the credit facility?

The facility has a four-year term. After the initial 12-month borrowing period, repayment will occur in 12 equal quarterly installments over the remaining three years. The borrowing rate is variable, ranging from 1.85% to 2.50% over local borrowing rates.

Is this debt recourse to the parent company, Equinix, Inc.?

Yes, the credit facility is guaranteed by Equinix, Inc. and is secured by the Asia Pacific assets of its subsidiaries in Singapore and Japan.

EQIX 8-K: Material Agreements & Financial Events

Summary

Equinix, Inc. (EQIX) announced on September 7, 2007, the entry into a material definitive agreement concerning a new multi-currency credit facility. This facility, amounting to approximately $40 million in local currency equivalents, is established for its wholly-owned subsidiaries in Singapore and Japan. The primary purpose of this financing is to support capital expenditures related to IBX (International Business Exchange) data center expansions in these key Asian markets.

Key Highlights

1Equinix's subsidiaries in Singapore and Japan have secured a $40 million multi-currency credit facility.
2The facility is designed to fund capital expenditures for IBX data center expansion projects in Singapore and Tokyo.
3The credit facility has a four-year term.
4Borrowings will be in Singapore dollars and Japanese yen.
5The facility is guaranteed by Equinix, Inc. and secured by the Asia Pacific assets of the subsidiaries.
6Initial funding of approximately $18.3 million SGD and $1.5 billion JPY occurred on September 7, 2007.
7The company anticipates drawing the full facility amount over the next 12 months.

EQUINIX INC 8-K Report, Material Agreement (Sep 7, 2007)

Summary

Key Highlights

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