Summary
Equinix, Inc. (EQIX) announced on May 13, 2014, a significant transaction involving the exchange of its 4.75% Convertible Subordinated Notes for common stock and cash. The company entered into agreements with certain noteholders to retire approximately $33.23 million of these notes. In return, Equinix will issue approximately 394,045 shares of its common stock and pay around $3.34 million in cash.
Key Highlights
- 1Equinix is exchanging approximately $33.23 million of its 4.75% Convertible Subordinated Notes for common stock and cash.
- 2The company will issue roughly 394,045 shares of its common stock as part of the exchange.
- 3Equinix will also pay approximately $3.34 million in cash to the noteholders.
- 4The transaction is expected to provide a net present value benefit to Equinix.
- 5The exchanges are scheduled to close on May 13, 2014, subject to customary conditions.
- 6As a result of this and prior exchanges, Equinix anticipates recognizing a loss on debt extinguishment of approximately $45 million in Q2 2014.