Equinix, Inc. (NASDAQ: EQIX), the global interconnection and data center company, today announced that it has priced an offering of $500 million aggregate principal amount of its 4.875% senior notes due 2020 (the “ 2020 Notes”) and $1,000 million aggregate principal amount of its 5.375% senior notes due 2023 (the “ 2023 Notes,” and, together with the 2020 Notes, the “ Notes”), an increase in combined aggregate principal amount from the $1 billion offering of notes previously announced. The offering is being made pursuant to an automatically effective shelf registration statement (including a preliminary prospectus relating to the offering) on file with the Securities and Exchange Commission (SEC). The offering is expected to close on March 5, 2013, subject to customary closing conditions.
The notes will be Equinix’s general senior obligations and will rank equal in right of payment to all of its existing and future senior indebtedness. Interest will be payable semi-annually at a rate of 4.875% per year for the 2020 Notes and 5.375% per year for the 2023 Notes. The 2020 Notes will mature on April 1, 2020 and the 2023 Notes will mature on April 1, 2023. The Notes are redeemable by Equinix prior to maturity at a premium under certain circumstances.
The net proceeds to Equinix from this offering will be approximately $1.48 billion after deducting underwriting discounts and estimated offering expenses payable by it. Equinix intends to use the net proceeds from this offering to redeem its outstanding 8.125% Senior Notes due 2018 pursuant to the optional redemption provisions of such notes and for general corporate purposes, which may include capital expenditures, distributions to its stockholders in connection with its proposed conversion to a REIT, working capital and potential acquisitions and strategic transactions. Currently, however, Equinix does not have any agreements or understandings with respect to any such material strategic transactions or acquisitions.