Summary
Equinix Inc. (EQIX) announced on February 14, 2018, its definitive agreement to acquire the Infomart data center facility in Dallas from ASB Allegiance Data Centers, LLC. The transaction is valued at approximately $781 million, comprising $31 million in cash and $750 million in senior unsecured notes. The acquisition is anticipated to close in mid-2018, subject to customary closing conditions. This strategic move signifies Equinix's continued expansion in key markets, enhancing its global footprint and data center capacity. Investors should note the financing structure, which involves both cash consideration and the issuance of significant long-term debt. The new notes will be issued in five tranches with varying maturities between 12 and 36 months, carrying a 5.000% interest rate and are unsecured, ranking equally with existing senior unsecured indebtedness. The company has also included a cautionary note regarding forward-looking statements and potential risks associated with the acquisition and integration process.
Key Highlights
- 1Equinix to acquire the Infomart data center in Dallas for approximately $781 million.
- 2Transaction consideration includes $31 million in cash and $750 million in 5.000% senior unsecured notes.
- 3The acquisition is expected to close in mid-2018, pending satisfaction of closing conditions.
- 4The $750 million in notes will be issued in five series with maturities ranging from 12 to 36 months.
- 5The notes are general unsecured obligations, ranking equally with other senior unsecured indebtedness.
- 6Restrictive covenants similar to existing senior notes will apply, including limitations on liens and asset sales.
- 7A Change of Control Triggering Event would require Equinix to offer to repurchase the notes at 101% of the principal amount.