Equinix updates U.S. and sterling term loan tranche sizes and OIDs

By Sara Rosenberg

New York, Dec. 4 – Equinix Inc. firmed the split of its seven-year covenant-light term loan B (Ba2/BBB-) as a $250 million tranche and a £300 million tranche, according to a market source.

At launch, the loan was described as a $700 million equivalent, with U.S. dollar and sterling sizes to be determined.

Pricing on the U.S. term loan was unchanged at Libor plus 325 basis points with a 0.75% Libor floor, but the original issue discount was tightened to 99.75 from talk of 99 to 99.5, the source said.

And, the discount on the sterling term loan firmed at 99.5, the tight end of the 99 to 99.5 talk, the source continued. This tranche is still priced at Libor plus 375 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets and TD Securities (USA) LLC are the leads on the deal.

Proceeds will be used to help fund the acquisition of TelecityGroup plc.

Other funds for the transaction will come from the sale of common stock, $1.1 billion in bonds and cash on hand.

Closing is expected early in the first half of 2016.

Equinix is a Redwood City, Calif.-based interconnection and data center company. Telecity is a London-based carrier-neutral data center and colocation center provider.

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