8-KMaterial AgreementsFinancial Events

EQUINIX INC 8-K Report, Material Agreement (Jun 12, 2008)

Filed June 12, 2008For Securities:EQIX

Summary

This 8-K filing from Equinix Inc. (EQIX) on June 12, 2008, reports on a material definitive agreement regarding an amendment to their multi-currency credit facility. The key development is the addition of Equinix Hong Kong Limited as a borrower and an increase in the facility size by the Hong Kong dollar equivalent of $20 million. This expanded credit line is earmarked for funding capital expenditures related to IBX expansion plans in the Asia Pacific region. The amendment also brings Rabobank on as a lender, alongside ABN AMRO Bank. The increased facility is secured by the Asia Pacific assets of Equinix's subsidiaries. Management anticipates utilizing the full $20 million increase over the next 12 months, indicating continued investment in their data center infrastructure to support growth in this key market. Investors should view this as a positive step towards expanding operational capacity and market presence.

Key Highlights

  • 1Equinix Inc. amended its multi-currency credit facility agreement on June 6, 2008.
  • 2Equinix Hong Kong Limited was added as a borrower under the facility.
  • 3The credit facility was increased by the local currency equivalent of $20,000,000.
  • 4Rabobank was added as a lender in addition to ABN AMRO Bank.
  • 5The borrowed funds are intended to finance capital expenditures for IBX expansion in Hong Kong.
  • 6The expanded facility will continue to be secured by Equinix's Asia Pacific assets.
  • 7Equinix anticipates borrowing the full amount of the increase within the next 12 months.

Frequently Asked Questions

The primary purpose of the amendment is to increase the company's borrowing capacity by $20 million (in local currency equivalents) to fund capital expenditures for IBX expansion projects in Hong Kong. It also formally adds Equinix Hong Kong Limited as a borrower.

The lenders involved are ABN AMRO Bank N.V. (acting as facility agent, arranger, and collateral agent) and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., Hong Kong Branch (Rabobank).

The funds from the additional $20 million borrowing capacity will be used to finance capital expenditures such as leasehold improvements, equipment, and other installation costs related to Equinix's IBX (International Business Exchange) expansion plans in Hong Kong.

The HK Dollar equivalent of $20,000,000 can be borrowed until June 2009, with repayment occurring in 12 equal quarterly installments thereafter.