REG - Equinix, Inc - Financing Update <Origin Href="QuoteRef">EQIX.O</Origin>

EquinixAnnouncement

05/01/2016 13:41

RNS Number : 3821G
Equinix, Inc
20 November 2015
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION
20 November 2015
Equinix, Inc. ("Equinix")
Financing update 
On November 18, 2015, Equinix announced that it has priced an offering of 2,604,167 shares of its common stock (the "Firm Shares") at a price to the public of $288.00 per share (the "Equity Offering").
In addition, Equinix has granted the underwriters a 30-day option to purchase up to an additional 390,625 shares of its common stock (the "Additional Shares") at the public offering price, less underwriting discounts and commissions, and less an amount per share equal to any per share dividends that are paid or payable by Equinix on the Firm Shares but that are not payable on the Additional Shares. All of the shares of the common stock to be sold in the offering will be offered by Equinix. The offering is expected to close on November 24, 2015, subject to customary closing conditions.
Equinix expects the net proceeds from the common stock offering to be approximately $721.2 million (or approximately $829.5 million if the underwriters exercise their option to purchase the Additional Shares in full).
As previously announced on November 16, 2015, Equinix has filed a registration statement (including a preliminary prospectus supplement and accompanying prospectus) with the Securities and Exchange Commission (the "SEC") for the Equity Offering. These documents may be viewed on the SEC website at www.sec.gov and on the Equinix website at www.equinix.com.
On November 19, 2015, Equinix announced that it has priced an offering of $1.1 billion in aggregate principal amount of its 5.875% senior notes due 2026 (the "New Senior Notes"). The offering is expected to close on December 4, 2015, subject to customary closing conditions.
The New Senior 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 5.875% per year. The notes will mature on January 15, 2026. The notes are redeemable by Equinix prior to maturity at a premium under certain circumstances. If for any reason the cash and share offer Equinix announced in May 2015 (the "Telecity Acquisition") for the entire issued and to be issued share capital of TelecityGroup plc ("TelecityGroup") is not completed on or prior to November 29, 2016, or if, prior to such date, Equinix's offer for TelecityGroup has lapsed or been withdrawn for the purposes of the UK's City Code on Takeovers and Mergers, then Equinix will be required to redeem the New Senior Notes.
The net proceeds to Equinix from this offering will be approximately $1.084 billion after deducting underwriting discounts and estimated offering expenses payable by it.
The New Senior Notes offering is being made pursuant to an effective shelf registration statement (including a preliminary prospectus supplement and accompanying prospectus relating to the offering) on file with the SEC. These documents may be viewed on the SEC website at www.sec.gov and on the Equinix website at www.equinix.com.
Equinix intends to use the net proceeds of the Equity Offering and the New Senior Notes issuance, together with the net proceeds of a proposed senior secured term loan that it intends to seek in an aggregate principal amount of up to approximately $700 million (the "Proposed New Term Loan") and cash on hand, for merger and acquisition activities and repayment of indebtedness (including the funding of the cash portion of the purchase price for the Telecity Acquisition and repayment of existing TelecityGroup indebtedness in connection therewith) and for general corporate purposes. If for any reason the Telecity Acquisition is not completed, then Equinix intends to use all of the net proceeds from the Equity Offering for general corporate purposes. The completion of the Equity Offering is not contingent upon the completion of the issuance of the New Senior Notes, the Proposed New Term Loan or the Telecity Acquisition.
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About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. In 33 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies. www.equinix.com.
Important Notices
In accordance with Rule 26.1 of the UK's City Code on Takeovers and Mergers, a copy of this announcement will be available, subject to certain restrictions relating to persons resident in certain jurisdictions, on Equinix's website at www.equinix.com. For the avoidance of doubt, the contents of that website are not incorporated into, and do not form part of, this announcement.
Each of the Equinix, Inc. directors accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of each of the Equinix, Inc. directors (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement for which they are responsible is in accordance with the facts and does not omit anything likely to affect the import of that information.
This notice shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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