8-KFinancial Events

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

Filed July 8, 2008For Securities:EQIX

Summary

Equinix, Inc. (EQIX) reported on July 8, 2008, an additional borrowing under its Senior Facilities Agreement. This filing pertains to an event on July 3, 2008, where Equinix (Germany) GmbH, a subsidiary, drew an additional 500,000 Euros (approximately $785,000 USD) under its existing £82,000,000 Senior Facilities Agreement. This facility is designated for funding current and future European operations. The incremental borrowing brings the total outstanding under the agreement to approximately £65,978,000 (roughly $130,799,000 USD) with a blended interest rate of about 7.51%. This facility became an indirect obligation of Equinix following its acquisition of IXEurope plc in September 2007. This event highlights the ongoing financing activities for Equinix's European expansion and operational needs.

Key Highlights

  • 1Equinix (Germany) GmbH, a subsidiary, drew an additional 500,000 Euros (approx. $785,000 USD) on July 3, 2008.
  • 2The additional borrowing is under the existing £82,000,000 Senior Facilities Agreement, dated June 29, 2007.
  • 3The Senior Facilities Agreement is used to fund Equinix's operations in Europe.
  • 4Total borrowings under the agreement increased to approximately £65,978,000 (approx. $130,799,000 USD) as of July 3, 2008.
  • 5The blended interest rate on the total borrowings is approximately 7.51%.
  • 6This debt became an indirect obligation of Equinix due to the acquisition of IXEurope plc in September 2007.

Frequently Asked Questions

This 8-K filing reports on a new financial obligation undertaken by Equinix's European subsidiary, Equinix (Germany) GmbH, specifically an additional borrowing under its existing Senior Facilities Agreement to support European operations.

The additional borrowing of 500,000 Euros increases the total outstanding debt under the Senior Facilities Agreement to approximately £65,978,000 (around $130,799,000 USD). The interest rate on the total debt is approximately 7.51%.

The Senior Facilities Agreement was put in place prior to the IXEurope acquisition (June 29, 2007) and Equinix became indirectly obligated for this debt upon its acquisition of IXEurope plc in September 2007. This ongoing facility is crucial for funding Equinix's European expansion and operational requirements.

This is an incremental draw on an existing debt facility. Equinix (Germany) GmbH borrowed an additional amount under the pre-existing £82,000,000 Senior Facilities Agreement.