Equinix's 2.5% convertible debentures are convertible

By Angela McDaniels

Tacoma, Wash., Feb. 26 - Equinix, Inc.'s 2.5% convertible subordinated debentures due 2024 became convertible into common stock at any time effective Dec. 31 due to the triggering of the parity provision clause, according to the company's 10-K report for 2008 filed with the Securities and Exchange Commission Thursday.

The company said the clause was triggered because of a combination of factors, including the fact that the small number of convertibles that remain outstanding has resulted in small and infrequent trades, creating an illiquid market, and the depressed price of Equinix's common stock during this period.

As of Dec. 31, $19.2 million of the convertibles remained outstanding. Holders had the right to put the convertibles back to the company on Feb. 15, but none of them did so.

The conversion ratio is 25.3165 shares per $1,000 principal amount, which represents a conversion price of $39.50 per share. The company's stock closed at $45.53 (Nasdaq: EQIX) on Thursday.

Equinix is a Foster City, Calif.-based provider of network neutral colocation, interconnection and managed IT infrastructure services.

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