Summary
Equinix, Inc. (EQIX) reported on May 1, 2014, a significant transaction involving the exchange of its 4.75% Convertible Subordinated Notes for common stock and cash. This filing details an agreement with certain noteholders to exchange approximately $71.3 million of these notes. In return, Equinix will issue roughly 845,040 shares of its common stock and pay approximately $7.3 million in cash. This transaction, following a prior exchange disclosed in late April, is expected to provide a net present value benefit to the company.
Key Highlights
- 1Equinix entered into note exchange agreements on May 1, 2014.
- 2Approximately $71.3 million in 4.75% Convertible Subordinated Notes are being exchanged.
- 3Holders will receive approximately 845,040 shares of Equinix common stock.
- 4Equinix will pay approximately $7.3 million in cash as part of the exchange.
- 5The exchanges are expected to occur on May 2, 2014, subject to closing conditions.
- 6The company anticipates recognizing a loss on debt extinguishment of approximately $38 million in Q2 2014, due to this and prior exchanges.
- 7The issuance of common stock is being conducted under the Section 3(a)(9) exemption from registration.