By Rebecca Melvin
New York, June 9 - Equinix Inc. priced an upsized $325 million of seven-year convertibles after the market close Monday at par to yield 4.75% with a 17.5% initial conversion premium, according to a syndicate source.
The deal, which was launched ahead of Monday's market open, was expected to be $250 million in size.
Pricing came at the cheap end of talk, which was 4.25% to 4.75% for the yield and 17.5% to 22.5% for the initial conversion premium, according to a syndicate source.
The subordinated notes are registered.
Joint bookrunners Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Goldman Sachs & Co. have been granted an over-allotment option to purchase up to an additional $48.75 million of notes, which was increased from $37.5 million.
The notes are non-callable with no puts, with dividend and takeover protection.
Proceeds will be used to fund a call spread and for capital expenditures and general corporate purposes.
The capped call transactions, entered into with certain underwriters or their affiliates, covering about 3.9 million of Equinix common shares, have cap prices 60% higher than Monday's closing price of Equinix common stock.
Foster City, Calif.-based Equinix is a network information technology services provider.
| Issuer: | Equinix Inc.
|
| Issue: | Convertible subordinated notes
|
| Amount: | $325 million, upsized from $250 million
|
| Greenshoe: | $48.75 million, upsized from $37.5 million
|
| Maturity: | June 15, 2016
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Goldman Sachs & Co.
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $84.32
|
| Conversion ratio: | 11.8599
|
| Price talk: | 4.25%-4.75%, up 17.5%-22.5%
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Net share settlement: | Yes
|
| Pricing date: | June 8
|
| Settlement: | June 12
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: EQIX
|
| Stock reference: | $71.76
|
| Market capitalization: | $2.84 billion
|
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