Nashville, Feb. 6 - Equinix Inc. sold $75 million of 20-year convertible subordinated notes at par to yield 2.5% with a 34% initial conversion premium via sole bookrunner Citigroup Global Markets Inc.
The Rule 144A/Regulation S deal priced cheaply outside yield talk of 1.75% to 2.25% but aggressively outside premium guidance of 28% to 32%.
Foster City, Calif.-based Equinix intends to use the net proceeds from this offering, together with existing cash, 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.
Terms of the deal are:
| Issuer: | Equinix Inc.
|
| Issue: | Convertible subordinated notes
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | Feb. 15, 2024
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 34%
|
| Conversion price: | $39.50
|
| Conversion ratio: | 25.3165
|
| Contingent conversion: | 120%
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
|
| Price talk: | 1.75-2.25%, up 28-32%
|
| Pricing date: | Feb. 5
|
| Settlement date: | Feb. 11
|
| Distribution: | Rule 144A/Regulation S
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
