Equinix Prices $325M Convertible Notes Offer

NEW YORK (AP) — Data-center-service provider Equinix Inc. raised the total value of the 4.75 percent convertible subordinated notes due 2016 that it is offering to $325 million from $250 million.

The higher amount was announced Tuesday, a day after Equinix said it would offer $250 million in notes.

The notes convert into stock at a rate of about $84.32 per common share, the company said Tuesday.

Since converting the shares would dilute the value of shares held by existing holders, Equinix entered certain transactions with underwriters that are designed to reduce potential dilution.

The underwriters have the option to purchase an additional $48.75 million in notes in the case of an over-allotment. That was raised from the $37.5 million in over-allotments the company announced on Monday. Citi, JPMorgan Securities and Goldman Sachs are book-running managers for the offering.

Net proceeds from the sale will be about $273.1 million after underwriting discounts and expenses. The Foster City, Calif., company plans to use proceeds to pay for the transaction, expansion and general expenses.

Equinix shares fell 86 cents to $70.90 in midmorning trading.