8-KMaterial AgreementsExhibits & Filings

EQUINIX INC 8-K Report, Material Agreement (Mar 14, 2017)

Filed March 14, 2017For Securities:EQIX

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.

Frequently Asked Questions

Equinix raised approximately $2,122 million from the common stock offering and an estimated $1,236 million from the senior notes offering, totaling roughly $3,358 million in gross proceeds before offering expenses.

The primary use of the net proceeds from both the stock and notes offerings, combined with existing term loan borrowings, is to finance the previously announced acquisition of Verizon Communications Inc.'s colocation services business, which includes 24 data center sites.

Equinix issued $1,250,000,000 in aggregate principal amount of 5.375% Senior Notes due 2027. These notes are general senior obligations, rank equally with existing senior indebtedness, pay interest semi-annually, and mature on May 15, 2027. They are redeemable under certain conditions and will be redeemed at par if the Verizon acquisition does not close by December 6, 2017.

The acquisition involves 24 data center sites located in the United States, Brazil, and Colombia, representing a significant expansion of Equinix's global footprint and service offerings in these regions.