Summary
Equinix, Inc. (EQIX) announced on December 19, 2018, that it has entered into a new Equity Distribution Agreement with several managers, including Barclays Capital Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., MUFG Securities Americas Inc., and TD Securities (USA) LLC. This agreement allows Equinix to sell shares of its common stock, par value $0.001 per share, with an aggregate offering price of up to $750,000,000 through these managers. The primary purpose of this offering is to provide Equinix with the flexibility to raise capital for working capital and general corporate purposes. The shares will be sold at prevailing market prices through ordinary brokers' transactions on the Nasdaq Global Select Market or other "at the market" methods. This initiative replaces a previous equity distribution agreement that had no shares remaining available for sale.
Key Highlights
- 1Equinix entered into a new Equity Distribution Agreement with multiple managers to potentially sell up to $750 million of its common stock.
- 2The shares will be sold on an "at-the-market" basis, allowing Equinix to capitalize on prevailing market prices.
- 3Proceeds from any sales are intended for working capital and general corporate purposes.
- 4This agreement replaces a prior equity distribution agreement which was fully utilized.
- 5The offering is being conducted under Equinix's existing shelf registration statement on Form S-3.
- 6Commissions to managers will not exceed 2.0% of the gross sales price per share, plus certain expenses.
- 7Equinix has the option to suspend or terminate the offering at any time.