Summary
Equinix, Inc. (EQIX) filed an 8-K on March 13, 2017, detailing two significant capital raising events that occurred on March 7-8, 2017. The company successfully completed a public offering of its common stock, selling 6,069,444 shares for an estimated net proceeds of approximately $2,122 million. Additionally, Equinix issued and sold $1,250,000,000 aggregate principal amount of 5.375% Senior Notes due 2027, expecting net proceeds of approximately $1,236 million. The primary purpose for these offerings, alongside existing term loan borrowings, is to finance the previously announced acquisition of Verizon Communications Inc.'s colocation services business, which comprises 24 data center sites. This strategic move signals Equinix's aggressive expansion and commitment to consolidating market share in the data center industry. The net proceeds will be used for the acquisition, related transaction fees, and general corporate purposes.
Key Highlights
- 1Completion of a significant public offering of Equinix common stock, raising approximately $2,122 million in net proceeds.
- 2Successful issuance of $1,250 million in 5.375% Senior Notes due 2027, with estimated net proceeds of $1,236 million.
- 3The capital raised from both offerings, along with existing credit facilities, is earmarked for the acquisition of Verizon's colocation business.
- 4The acquisition includes 24 data center sites across the United States, Brazil, and Colombia, indicating international expansion.
- 5Proceeds will also support transaction expenses and general corporate purposes.
- 6The Senior Notes are general senior obligations, ranking equally with existing senior indebtedness, and mature on May 15, 2027.
- 7A redemption clause for the Senior Notes is included if the Verizon acquisition is not completed by December 6, 2017.