8-KMaterial AgreementsExhibits & Filings

EQUINIX INC 8-K Report, Material Agreement (Nov 24, 2015)

Filed November 24, 2015For Securities:EQIX

Summary

Equinix, Inc. (EQIX) filed an 8-K on November 24, 2015, detailing two significant capital-raising transactions. The company successfully completed a public offering of its common stock, raising approximately $829.5 million in net proceeds. Concurrently, Equinix also issued and sold $1.1 billion aggregate principal amount of 5.875% Senior Notes due 2026, generating estimated net proceeds of $1,084 million. These substantial capital infusions are primarily intended to fund merger and acquisition activities, including the cash portion of the previously announced Telecity Group acquisition, and for general corporate purposes. The company has also indicated plans to use these proceeds to repay existing indebtedness. The successful completion of these offerings provides Equinix with significant financial flexibility to pursue strategic growth initiatives, particularly the integration of TelecityGroup.

Key Highlights

  • 1Completed a public offering of common stock, raising approximately $829.5 million in net proceeds.
  • 2Issued $1.1 billion in aggregate principal amount of 5.875% Senior Notes due 2026, with estimated net proceeds of $1,084 million.
  • 3The 5.875% Senior Notes are general senior obligations maturing on January 15, 2026.
  • 4Proceeds from both offerings are earmarked for merger and acquisition activities, including the Telecity Group acquisition.
  • 5Funds will also be used for repayment of indebtedness and general corporate purposes.
  • 6The company will be required to redeem the Notes if the Telecity Acquisition is not completed by November 29, 2016.
  • 7Both offerings were conducted under Equinix's existing Registration Statement on Form S-3.

Frequently Asked Questions

The primary purpose of these capital raises was to fund merger and acquisition activities, specifically the cash portion of the Telecity Group acquisition announced in May 2015, and to repay existing indebtedness associated with that acquisition. Additionally, proceeds are allocated for general corporate purposes.

Equinix raised approximately $829.5 million in net proceeds from the common stock offering and approximately $1,084 million in net proceeds from the senior notes offering, totaling roughly $1.9135 billion in net proceeds from these two transactions.

The new Senior Notes have an aggregate principal amount of $1.1 billion, a coupon rate of 5.875% per annum, and mature on January 15, 2026. They are general senior obligations of Equinix and rank equally with its existing and future senior indebtedness.

If the Telecity Acquisition is not completed by November 29, 2016, or if the offer is withdrawn under specific circumstances, Equinix will be required to redeem the Senior Notes.