Published on 7/6/2011 in the Prospect News High Yield Daily.
New Issue: Equinix sells upsized $750 million 10-year notes at par to yield 7%
By Paul A. Harris
Portland, Ore., July 6 - Equinix, Inc. priced an upsized $750 million issue of 10-year senior notes (Ba2/BB-/) at par to yield 7% on Wednesday, according to an informed source.
The yield printed at the tight end of the 7% to 7¼% price talk.
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $500 million.
The Foster City, Calif.-based data services company plans to use the proceeds for general corporate purposes, including the repayment of its 2½% convertible subordinated notes due 2012, as well as for working capital, potential acquisitions and strategic transactions.
Issuer: | Equinix, Inc.
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Amount: | $750 million, upsized from $500 million
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Maturity: | July 15, 2021
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Securities: | Senior notes
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Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc.
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Co-managers: | Bank of America Merrill Lynch, Barclays Capital Inc., Evercore Partners, ING, RBS Securities Inc.
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Coupon: | 7%
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Price: | Par
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Yield: | 7%
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Spread: | 391 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2016, then callable at 103.5, 102.333, 101.167, par on and after July 15, 2019
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Equity clawback: | 35% at 107.0 until July 15, 2014
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Change-of-control put: | 101%
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Trade date: | July 6
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Settlement date: | July 13
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Ratings: | Moody's: Ba2
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| Standard & Poor's: BB-
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Distribution: | SEC registered
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Price talk: | 7% to 7¼%
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Marketing: | Quick to market
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