8-KMaterial AgreementsFinancial EventsOther Events+1

EQUINIX INC 8-K Report, Material Agreement (May 29, 2015)

Filed May 29, 2015For Securities:EQIX

Summary

Equinix Inc. (EQIX) filed an 8-K on May 29, 2015, to announce a significant development: a recommended cash and share offer to acquire Telecity Group plc. This proposed transaction, structured as a court-sanctioned scheme of arrangement, values each TelecityGroup share at approximately 1,145.0 pence, equating to a total transaction value of approximately £2,351.9 million. The offer comprises 572.5 pence in cash and 0.0327 new Equinix common shares per TelecityGroup share. The acquisition is subject to regulatory clearances and shareholder approvals from TelecityGroup. In connection with this potential acquisition, Equinix also entered into a cooperation agreement with TelecityGroup and secured a £875 million bridge credit facility from JPMorgan Chase Bank, N.A. This facility is intended to provide interim financing, with plans for permanent financing to be obtained before the transaction's closing. The deal is expected to close in the first half of 2016, subject to the fulfillment of all conditions. Investors should note this strategic move signifies Equinix's intent to expand its global footprint and market presence through inorganic growth.

Key Highlights

  • 1Equinix announced a recommended cash and share offer to acquire Telecity Group plc.
  • 2The transaction values TelecityGroup at approximately £2,351.9 million.
  • 3Each TelecityGroup share will be exchanged for 572.5 pence in cash and 0.0327 Equinix common shares.
  • 4The deal is structured as a court-sanctioned scheme of arrangement and is subject to regulatory and shareholder approvals.
  • 5A cooperation agreement has been entered into between Equinix and TelecityGroup.
  • 6Equinix secured a £875 million bridge credit facility to finance the transaction, with plans for permanent financing.
  • 7The acquisition is anticipated to close in the first half of 2016.

Frequently Asked Questions

This 8-K filing announces Equinix Inc.'s entry into a material definitive agreement regarding a recommended cash and share offer to acquire Telecity Group plc. It outlines the key terms of the transaction, financing arrangements, and conditions precedent.

TelecityGroup shareholders will receive 572.5 pence in cash and 0.0327 new shares of Equinix common stock for each TelecityGroup share they own. The total value of the offer is approximately £2,351.9 million.

The acquisition is conditional upon obtaining necessary competition authority clearances and securing approval from TelecityGroup shareholders, as well as the sanction of the High Court of England and Wales. The transaction is expected to be completed in the first half of 2016.

Equinix has secured a £875 million bridge credit facility from JPMorgan Chase Bank, N.A., to fund the transaction. The company intends to secure permanent financing to replace this bridge loan before the closing of the acquisition.