Summary
Equinix, Inc. (EQIX) filed an 8-K on November 10, 2015, detailing the execution of its previously announced special distribution of approximately $627.0 million, or $10.95 per share. This distribution was paid out on November 10, 2015, to stockholders of record as of October 8, 2015. A significant portion of this distribution was made in shares of common stock, with approximately 1.69 million shares issued, alongside a cash component of approximately $125.5 million. This strategic move is expected to align Equinix's taxable income recognition for 2015 with the total value of distributions made throughout the year, including regular quarterly dividends and adjustments related to convertible notes. The filing also highlights the impact of this special distribution on Equinix's 4.75% Convertible Subordinated Notes due June 15, 2016. The conversion rate for these notes has been adjusted, decreasing the conversion price per share. This adjustment means the outstanding principal amount of these notes is now convertible into a larger aggregate number of common shares at a lower effective price, which could be a material consideration for noteholders and equity investors alike.
Key Highlights
- 1Equinix completed its special distribution of approximately $627.0 million on November 10, 2015.
- 2The special distribution amounted to roughly $10.95 per share.
- 3Approximately 1.69 million shares of common stock were issued as part of the distribution.
- 4The cash component of the distribution totaled approximately $125.5 million.
- 5The special distribution impacts the conversion rate of the 4.75% Convertible Subordinated Notes due June 15, 2016.
- 6The conversion price for the 2016 Convertible Notes decreased from approximately $79.87 to $76.98 per share.
- 7The distribution is intended to align Equinix's taxable income for 2015 with total distributions made during the year.