Summary
Equinix Inc. (EQIX) filed a Form 8-K on October 30, 2014, to report on a significant special distribution declared by its Board of Directors on October 16, 2014. The total distribution amounts to $416.0 million, with an expected payment date of November 25, 2014. This distribution will be offered to shareholders of record as of October 27, 2014, who will have the option to receive their portion in either common stock or cash. Investors should note that while a cash election is available, it is capped at a maximum of $83.2 million for all stockholders collectively. The remainder of the distribution will be paid in Equinix's common stock, along with any cash paid in lieu of fractional shares. Election materials were distributed by Computershare Investor Services on October 30, 2014, with an election deadline of November 17, 2014. This event is material for shareholders as it represents a substantial return of capital.
Key Highlights
- 1Equinix declared a special distribution of $416.0 million.
- 2The distribution is payable on November 25, 2014, to shareholders of record as of October 27, 2014.
- 3Shareholders have the option to receive the distribution in either common stock or cash.
- 4The total cash payout to all shareholders is capped at a maximum of $83.2 million.
- 5Any amount exceeding the cash cap will be distributed in shares of Equinix common stock.
- 6An election deadline of November 17, 2014, is set for shareholders to make their choice.
- 7The Special Distribution is valued at approximately $7.57 per share based on outstanding shares as of the record date.