REDWOOD CITY, Calif.
, May 23, 2024 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, announced the pricing of an underwritten public offering of $750 million aggregate principal amount of 5.500% Senior Notes due 2034 (the "Notes"). On an after-swapped basis to EUR, the Notes are expected to carry an effective interest rate of approximately 3.9%. The Notes will be issued by Equinix Europe 2 Financing Corporation LLC ("Equinix Europe 2 Finco"), a wholly owned finance subsidiary of Equinix, Inc., and will be fully and unconditionally guaranteed on an unsecured basis by Equinix, Inc. The offering is expected to close on May 30, 2024, subject to the satisfaction of customary closing conditions.
The Notes will be Equinix Europe 2 Finco's unsecured senior obligations and will rank equal in right of payment to all of Equinix Europe 2 Finco's existing and future unsecured and unsubordinated indebtedness. Equinix, Inc.'s obligations under the guarantee will rank equally with its other unsecured and unsubordinated indebtedness.
Equinix estimates that the net proceeds from the sale of the Notes, after deducting underwriting discounts and estimated offering expenses payable by Equinix, will be approximately $736 million. Equinix intends to use the net proceeds from this offering to fund the acquisition of additional properties or businesses, fund development opportunities, and to provide for working capital and other general corporate purposes, including but not limited to refinancing of the upcoming maturities and for repayment of existing borrowings. Equinix has $1 billion principal amount of outstanding U.S.-dollar denominated Senior Notes due in November 2024, which Equinix had previously swapped from dollars to Euros through cross-currency swaps.
Barclays, BNP Paribas, BofA Securities, Goldman Sachs & Co. LLC, HSBC and J.P. Morgan are acting as joint book-running managers for the offering. Citigroup, MUFG, RBC Capital Markets, Scotiabank, Deutsche Bank Securities, ING, Morgan Stanley, Standard Chartered Bank, SMBC Nikko and TD Securities are acting as bookrunners for the offering. Mizuho Securities, PNC, Santander and US Bancorp are acting as co-managers for the offering.
The offering of the Notes is being made pursuant to an effective shelf registration statement, as amended (including a preliminary prospectus supplement relating to the offering) filed with the Securities and Exchange Commission (the "SEC"). A copy of the final prospectus supplement and accompanying prospectus relating to the offering of the Notes will be filed with the SEC and may be obtained at no cost by visiting the EDGAR database on the SEC's website at www.sec.gov. Alternatively, copies of the prospectus supplement and the accompanying prospectus relating to the offering of the Notes may be obtained, when available, by contacting Barclays Capital Inc. at (888) 603-5847, BNP Paribas Securities Corp. at +1 (800) 854-5674 (toll free), BofA Securities, Inc. at 1-800-294-1322 (toll free), Goldman Sachs & Co. LLC at 1-866-471-2526 (toll free), HSBC Securities (USA) Inc. at 1-866-811-8049 (toll free) or J.P. Morgan Securities LLC at 1-212-834-4533.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. In addition, this press release is not an offer to purchase or a notice of redemption with regard to any securities.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company®. Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including forward-looking statements regarding Equinix's intended use of proceeds and effective after-swap interest rate. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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SOURCE Equinix, Inc.
