8-KFinancial Events

EQUINIX INC 8-K Report, Financial Obligation (Jul 1, 2008)

Filed July 1, 2008For Securities:EQIX

Summary

This 8-K filing by Equinix Inc. (EQIX) reports on a recent financial obligation related to the development of a new data center. Specifically, on June 27 and June 30, 2008, a wholly-owned subsidiary, CHI 3, LLC, drew down the final portion of its development loan, borrowing an additional $2.7 million. This brings the total borrowings under the agreement to the full $110 million committed amount. These funds are designated for the construction of a significant new IBX data center facility located in Elk Grove Village, Illinois, which is expected to span approximately 250,000 square feet. The total loan, which carries a blended interest rate of 5.1875%, was secured through an agreement with SFT I, Inc. This action signifies progress in Equinix's expansion plans and its continued investment in building out new data center capacity to meet market demand.

Key Highlights

  • 1Equinix subsidiary CHI 3, LLC borrowed an additional $2.7 million on June 27 and 30, 2008.
  • 2This represents the final borrowing under the $110 million Development Loan and Security Agreement.
  • 3The total borrowings under the loan now amount to approximately $110 million.
  • 4The loan agreement is with SFT I, Inc.
  • 5Funds are for the development of a ~250,000 square foot IBX data center in Elk Grove Village, Illinois.
  • 6The current blended interest rate on the loan is 5.1875%.

Frequently Asked Questions

This filing is primarily to disclose a new direct financial obligation. Specifically, it reports that Equinix's subsidiary, CHI 3, LLC, has drawn down the remaining funds under a development loan agreement to finance the construction of a new data center.

The total borrowings under the Development Loan and Security Agreement with SFT I, Inc. now amount to approximately $110 million. The additional $2.7 million borrowed on June 27 and 30, 2008, represents the final draw, bringing the total to the full committed amount.

The new data center is being developed in Elk Grove Village, Illinois, and is expected to be approximately 250,000 square feet.

The blended interest rate on the total $110 million borrowed is 5.1875%.