Equinix, Inc. (NASDAQ: EQIX) said it intends to offer approximately USD750 million of its common stock pursuant to an effective shelf registration statement (including a preliminary prospectus supplement and accompanying prospectus relating to the offering) on file with the Securities and Exchange Commission.
In addition, Equinix intends to grant the underwriters a 30-day option to purchase up to an additional approximately USD112.5 million 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.
Equinix intends to use the net proceeds of the offering, together with the net proceeds of a proposed offering of senior unsecured notes in an aggregate principal amount of approximately USD1 billion and the net proceeds of a proposed senior secured term loan that it intends to seek in an aggregate principal amount of up to approximately USD700 million and cash on hand for merger and acquisition activities and repayment of indebtedness.
If for any reason the Telecity Acquisition is not completed, then Equinix intends to use all of the net proceeds from the offering for general corporate purposes. The completion of this common stock offering is not contingent upon the completion of the issuance of the proposed new notes, the proposed new term loan or the Telecity Acquisition.
J.P. Morgan, BofA Merrill Lynch, Citigroup, RBC Capital Markets, Barclays and TD Securities are acting as joint book-running managers and ING, MUFG, HSBC, Evercore ISI and BTIG are acting as co-managers for the offering.
Equinix 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.