Summary
Equinix, Inc. (EQIX) filed an 8-K on October 21, 2008, reporting two key events. Firstly, the company, through its indirect wholly-owned subsidiary Equinix (London) Limited, entered into an Agreement for Lease for a significant property and warehouse building in Slough, on the outskirts of London. This agreement is a precursor to a 20-year definitive lease, with an initial 15-year rent obligation of approximately $41.6 million, subject to market rent reviews and renewal options. Equinix has provided a guarantee for the tenant's obligations under this lease. Secondly, the filing announced that Equinix would release its financial results for the quarter ended September 30, 2008, on October 22, 2008, via a press release. This press release, which includes non-GAAP information and its reconciliation, is attached as an exhibit. Investors should note this filing primarily concerns a new UK property lease agreement and the upcoming release of quarterly financial performance.
Key Highlights
- 1Equinix (London) Limited entered into an Agreement for Lease for a property in Slough, UK, paving the way for a new data center facility.
- 2The definitive lease will span 20 years, with a tenant termination option after 15 years.
- 3The projected total rent obligation over the first 15 years of the lease is approximately $41.6 million.
- 4Rent is subject to review and adjustment to market rates at the 15-year mark and renewal periods.
- 5Equinix, Inc. has provided a corporate guarantee for the lease obligations of its UK subsidiary.
- 6The company announced its financial results for the quarter ended September 30, 2008, via a press release issued on October 22, 2008.
- 7The press release includes non-GAAP financial information with a reconciliation to GAAP.