REDWOOD CITY, Calif., Jan. 9 , 2017 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced it has borrowed the full €1.0 billion in additional senior secured term B loans ("the Term B-2 Loans") as previously announced by Equinix in its Form 8-K filed December 27, 2016. The Term B-2 Loans bear interest at a rate equal to EURIBOR plus a margin of 3.25%. Equinix expects to use the proceeds of the Term B-2 Loans to pay a portion of the purchase price for Equinix's acquisition of a portfolio of data center sites and their operations from Verizon Communications Inc., as previously announced by Equinix in its Form 8-K filed December 6, 2016.
In addition to the €1.0 billion borrowing, Equinix decreased the borrowing cost of its existing senior secured term loan B facility (the "Term B-1 Facility") effective December 22, 2016. The interest rate margin applicable to the loans borrowed under the Term B-1 Facility in US Dollars (of which $248,125,000 were outstanding as of December 31, 2016) was reduced from 3.25% to 2.50% and the LIBOR floor applicable to such loans was reduced from 0.75% to zero. The interest rate margin applicable to the loans borrowed under the Term B-1 Facility in Pounds Sterling (of which £297,750,000 were outstanding as of December 31, 2016) was reduced from 3.75% to 3.00%, with no change to the existing LIBOR floor of 0.75% applicable to such loans.
Bank of America Merrill Lynch acted as left lead arranger for the transactions.
Keith Taylor, Chief Financial Officer, Equinix:
"Our ability to opportunistically access the European debt markets has enabled Equinix to secure low-cost, long-term funds for a portion of Equinix's purchase of Verizon's data center sites and operations. This Euro-denominated debt also provides a natural hedge to protect the economic value of our European investments. Also, we're delighted with the quality of investors that participated in this debt transaction and will work expeditiously to finance the remaining portion of the acquisition cost related to the Verizon asset acquisition."
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. In 40 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.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. 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, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue 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; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent 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.