Equinix, Inc. (Nasdaq: EQIX), the global colocation, connectivity and interconnectivity provider, has announced the closing of its $1.5 billion five-year senior secured credit facility with a syndicate of eleven financial institutions.
The senior credit facility consists of a $1.0 billion senior secured multi-currency revolving credit facility and a $500.0 million amortizing senior secured term loan facility. Equinix borrowed the full amount of the $500.0 million term loan facility at closing.
Potential Acquisitions
A portion of the proceeds from the $500.0 million term loan facility was used by Equinix to refinance existing indebtedness (including indebtedness under Equinix’s former $750.0 million senior secured credit facility, which was terminated and replaced by the new $1.5 billion senior secured credit facility) and to pay fees and expenses incurred in connection with the closing of the senior credit facility.
The global colocation provider intends to use the remaining proceeds of the term loan facility and the proceeds of borrowings under the revolving credit facility for general corporate purposes, which may include potential acquisitions and strategic transactions.
Bank of America Merrill Lynch, J. P. Morgan Securities LLC and TD Securities (USA) LLC acted as joint lead arrangers and book runners, JPMorgan Chase Bank, N.A. and TD Securities (USA) LLC acted as co-syndication agents, and Barclays Bank PLC, Citibank, N.A., Royal Bank of Canada and ING Bank N.V., Singapore Branch, acted as co-documentation agents for the senior credit facility. Bank of America, N.A is the administrative agent for the senior credit facility.
“We are pleased with the successful completion of this senior credit facility, which increases our liquidity position and enhances our ability to invest in our growth opportunities,” said Keith Taylor, Chief Financial Officer for Equinix. “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 steady operating performance and credit strength.”
Agreement IBM SoftLayer
At the same time, Equinix has announced an agreement with IBM SoftLayer to provide enterprises direct access to the full portfolio of cloud hosting services from SoftLayer via the Equinix Cloud Exchange in nine markets worldwide spanning the Americas, Europe and Asia Pacific.
Equinix also announced Cloud Exchange enhancements, including API functionality that would make it easier for service providers to use a single interface to the Cloud Exchange, resulting in scalable, private and secured connections to their cloud hosting services with near real-time provisioning.
