8-KMaterial AgreementsExhibits & Filings

EQUINIX INC 8-K Report, Material Agreement (Aug 4, 2017)

Filed August 4, 2017For Securities:EQIX

Summary

Equinix Inc. (EQIX) announced on August 4, 2017, the execution of an Equity Distribution Agreement with a group of Managers, including RBC Capital Markets, Merrill Lynch, Citigroup Global Markets, and J.P. Morgan Securities. This agreement allows Equinix to sell up to $750 million of its common stock over time through "at-the-market" offerings. The shares will be sold on the NASDAQ exchange at prevailing market prices. This facility provides Equinix with flexibility to raise capital opportunistically for general corporate purposes and working capital needs. Investors should note that the company is not obligated to sell any shares and can suspend or terminate the offering at any time. The agreement outlines customary representations, warranties, and indemnification provisions. The proceeds are expected to be used for working capital and general corporate purposes, which is a standard use for funds raised through such equity distribution agreements. The offering is being made under the company's existing shelf registration statement.

Key Highlights

  • 1Equinix entered into an Equity Distribution Agreement to sell up to $750 million of its common stock.
  • 2The sales will be conducted as 'at-the-market' offerings on the NASDAQ.
  • 3The agreement allows for opportunistic sales of shares over time.
  • 4Proceeds are intended for working capital and general corporate purposes.
  • 5Equinix has no obligation to sell any shares and can suspend the offering at any time.
  • 6Commissions to managers will not exceed 2.0% of the gross sales price per share.
  • 7The offering is made under the company's existing shelf registration statement on Form S-3.

Frequently Asked Questions

The Equity Distribution Agreement allows Equinix to sell up to $750 million of its common stock from time to time through 'at-the-market' offerings. The funds raised are intended for working capital and general corporate purposes, providing the company with flexibility to access capital as needed.

No, Equinix is not obligated to sell any shares under the Equity Distribution Agreement. The company can choose to sell shares opportunistically and has the right to suspend or terminate the offering at any time.

The shares will be sold on the NASDAQ through ordinary brokers' transactions, to or through a market maker, or in block transactions, at prevailing market prices at the time of sale. This is referred to as an 'at-the-market' offering.

Equinix will pay the Managers a commission, not to exceed 2.0% of the gross sales price per share. The company will also pay certain expenses incurred by the Managers in connection with the offering.