Equinix $75 million convertible talked at 1.75-2.25%, up 28-32%

By Ronda Fears

Nashville, Feb. 4 - Equinix Inc. launched $75 million of 20-year convertibles talked to yield 1.75% to 2.25% with a 28% to 32% initial conversion premium via sole bookrunner Citigroup Global Markets Inc.

The Rule 144A/Regulation S deal is scheduled to price after Thursday's close.

The subordinated notes will be non-callable for five years with puts in years five, 10 and 15. There also is a 120% contingent conversion threshold.

There is an $11.25 million greenshoe available.

Foster City, Calif.-based Equinix intends to use the net proceeds from this offering, together with existing cash to the extent necessary, to redeem its 13% senior notes, to repay amounts outstanding under its credit facility and capital leases, and to provide for working capital and capital expenditures.

Equinix is a provider of network-neutral data centers and Internet exchange services for enterprises, content companies, systems integrators and network services providers.

The shares closed Wednesday up 59 cents, or 1.83%, to $32.60. In after-hours trading, the stock was down by $2.34, or 7.18%.

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