By E. Janene Geiss
Philadelphia, Sept. 21 - Equinix, Inc. upsized to $350 million and priced its convertible subordinated notes due Oct. 15, 2014 with a 3% coupon and 60% initial conversion premium.
The company initially announced plans to sell $300 million in convertible notes.
Citi is the bookrunner for the offering. Credit Suisse, Jefferies & Co., UBS Investment Bank and Barclays Capital are co-managers.
There is a $45.986 million over-allotment option.
The notes have a conversion price of $134.48 and a conversion ratio of 7.4360 shares per par.
The conversion rate will be increased by up to an additional 4.4616 shares per $1,000 principal amount if the stock price at the time of conversion exceeds the base conversion price of $134.48, with the number of additional shares set by a formula.
The convertibles priced at the same time as 3,662,556 shares of Equinix common stock, sold at $84.05 each. There is a 549,383 share over-allotment option on the common stock.
Equinix is a Foster City, Calif.-based network-neutral data centers and internet exchange services provider.
The company plans to use the proceeds for its acquisition of IXEurope plc, a European datacenter operator, which was announced in June.
| Issuer: | Equinix, Inc.
|
| Issue: | Convertible subordinated notes
|
| Amount: | $350 million
|
| Greenshoe: | $45.986 million
|
| Maturity: | Oct. 15, 2014
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 60%
|
| Conversion price: | $134.48
|
| Conversion ratio: | 7.4360, plus up to additional 4.4616 shares per $1,000 principal amount if the stock price at the time of conversion exceeds the base conversion price of $134.48
|
| Call: | Non-callable
|
| Put: | None
|
| Closing stock price: | $84.05
|
| Underwriters: | Citi (books), Credit Cuisse, Jefferies & Co., UBS Investment Bank, Barclays Capital (co-managers)
|
| Pricing date: | Sept. 20, after close
|
| Settlement: | Sept. 26
|
| Fees: | 2.625%
|
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