REDWOOD CITY, Calif.--(BUSINESS WIRE)--Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today announced that it has entered into a $750 million senior credit facility. The agreement consists of a $550 million senior secured revolving credit facility and a $200 million senior secured term loan facility. Both the revolving credit facility and the term loan facility have a five year maturity date extending to June 2017.
Proceeds from the senior credit facility were used to repay term loans of Equinix’s Asia-Pacific subsidiaries under its multi-currency credit facility agreement dated May 10, 2010 for approximately $200 million. Borrowings under the senior credit facility will bear interest at an index based on LIBOR plus a margin based on Equinix’s consolidated senior leverage ratio. At the time of closing, the applicable margin for LIBOR-based borrowings under the term loan facility was 175 basis points, and under the revolving credit facility, 137.5 basis points. A facility fee shall be payable quarterly on the total amount of the commitments under the revolving facility regardless of utilization under the revolver. The revolving facility also includes a standby letter of credit issuing facility and provides for borrowings in United States Dollars, as well as certain foreign currencies including Australian Dollars, Canadian Dollars, Euro, Hong Kong Dollars, Japanese Yen, Pounds Sterling, Singapore Dollars, Swiss Francs, and other currencies subject to agreement by the lenders.
The senior credit facility was led by a syndicate of financial institutions including Bank of America, N.A., as administrative agent, Wells Fargo Bank, National Association, as syndication agent, Barclays Bank PLC, Deutsche Bank AG New York Branch, HSBC Bank U.S.A., National Association, JPMorgan Chase Bank, N.A., The Royal Bank of Scotland PLC, and SunTrust Bank, as co-documentation agents, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as sole lead arranger and sole book manager.
“We are pleased with the successful completion of this senior credit facility, which heightens our liquidity position and enhances our ability to invest in our growth opportunities. We had high caliber financial institutions subscribing to this transaction and the strong demand and recognition for our credit is a testament to Equinix’s operating performance and credit strength,” said Keith Taylor, chief financial officer for Equinix.
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 900 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. http://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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