REDWOOD CITY, Calif., Nov. 18, 2015 /PRNewswire/ -- Equinix, Inc. (EQIX), the global interconnection and data center company, today 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 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 (the "SEC"). 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 additional shares in full). 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 $1 billion, 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 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 cash and share offer Equinix announced in May 2015 (the "Telecity Acquisition") for the entire issued and to be issued share capital of Telecity Group plc ("TelecityGroup") 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 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 has filed a registration statement (including a preliminary prospectus supplement and accompanying prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the registration statement (including the preliminary prospectus supplement and accompanying prospectus) for more complete information about Equinix and this offering. You may get the preliminary prospectus supplement and accompanying prospectus for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from J.P. Morgan Securities LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attention: Prospectus Department or by emailing firstname.lastname@example.org.
This press release 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.
Equinix, Inc. (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.
Forward Looking Statements
This press release contains forward-looking statements that are based on Equinix management's current expectations. Such statements include plans, projections and estimates regarding an offering of common stock, an anticipated offering of notes and a proposed term loan, the Telecity Acquisition and the receipt and use of the proceeds from the common stock offering and other proposed sources of proceeds. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including investor and lender demand, market conditions and other factors. In particular, there can be no assurance that Equinix will complete any portion of the proposed funding or the Telecity Acquisition. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors that could affect Equinix and its results is included in Equinix's filings with the SEC.