Summary
Equinix, Inc. (EQIX) filed an 8-K on April 24, 2014, to report on a significant debt-for-equity exchange. The company entered into an agreement to retire approximately $98.9 million of its outstanding 4.75% Convertible Subordinated Notes. In exchange for these notes, Equinix will issue approximately 1,172,766 shares of its common stock and $10.3 million in cash to the noteholder. This transaction is structured to provide a net present value benefit to Equinix, indicating a favorable financial outcome for the company. The exchange is scheduled to close on May 2, 2014, subject to standard closing conditions. The issuance of common stock is being conducted under the exemption provided by Section 3(a)(9) of the Securities Act of 1933, meaning it is not being registered with the SEC.
Key Highlights
- 1Equinix is exchanging approximately $98.9 million of its 4.75% Convertible Subordinated Notes.
- 2The company will issue approximately 1,172,766 shares of common stock as part of the exchange.
- 3Equinix will also pay approximately $10.3 million in cash to the noteholder.
- 4The transaction is expected to result in a net present value benefit for Equinix.
- 5The note exchange is scheduled to be completed on May 2, 2014.
- 6The issuance of common stock is being made under the Section 3(a)(9) exemption from registration.
- 7Keith D. Taylor, Chief Financial Officer, signed the filing.