Summary
Equinix, Inc. (EQIX) announced the completion of its acquisition of Infomart Dallas from ASB Allegiance Data Centers, LLC. This strategic acquisition expands Equinix's data center footprint and service offerings. To finance this transaction, Equinix issued $750 million in aggregate principal amount of 5.00% Senior Notes due between April 2019 and April 2021. These notes were issued in a private placement to ASB and are unsecured general senior obligations of Equinix.
Key Highlights
- 1Completion of the acquisition of Infomart Dallas, enhancing Equinix's data center capacity.
- 2Issuance of $750 million in aggregate principal amount of 5.00% Senior Notes across five tranches maturing from April 2019 to April 2021.
- 3The notes were issued in a private placement to ASB Allegiance Data Centers, LLC.
- 4The notes bear a 5.00% annual interest rate, payable semi-annually.
- 5The notes are general unsecured senior obligations and rank equally with other unsecured senior indebtedness.
- 6The indenture includes customary covenants related to liens, asset sales, mergers, and sale and leaseback transactions.
- 7A change of control provision requires Equinix to offer to purchase the notes at 101% of the principal amount plus accrued interest.
Frequently Asked Questions
The primary purpose of this 8-K filing was to report the completion of Equinix's acquisition of Infomart Dallas and to disclose the associated financing through the issuance of new senior notes.
The acquisition was financed through the issuance of $750 million of 5.00% Senior Notes due between April 2019 and April 2021. These notes were issued in a private placement to the seller, ASB Allegiance Data Centers, LLC.
The notes have a coupon rate of 5.00% per annum, mature at different dates between April 2019 and April 2021, and are unsecured general senior obligations of Equinix. They are not redeemable before maturity, but include a change of control provision.
The notes are general unsecured senior obligations and rank equally with Equinix's other unsecured senior indebtedness. They rank junior to secured indebtedness and to the liabilities of Equinix's subsidiaries, and are not guaranteed by the subsidiaries.