Equinix adds $250 million accordion to revolver, amends covenants

By Marisa Wong

Madison, Wis., Oct. 2 - Equinix, Inc. amended its credit agreement dated June 28, 2012 to amend some covenants, including some financial covenants, and add an accordion feature, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Equinix amended its $750 million credit facility, which is comprised of a $550 million senior secured multicurrency revolving credit facility and a $200 million senior secured term loan facility due June 28, 2017, on Sept. 26.

The amendment allows Equinix to request an up to $250 million increase to its revolving credit facility.

In addition, the amendment replaces the maximum permitted consolidated senior leverage ratio covenant of 3.25 times (and subsequent stepdowns) with a maximum permitted consolidated senior net leverage ratio covenant of 3.5 times that will be in effect for the remainder of the term of the amended facility.

Other financial covenants and definitions were also amended, including the minimum required consolidated fixed-charge coverage ratio, now increased to 1.5 times from 1.35 times, and the minimum required consolidated tangible net worth covenant, now fixed at $650 million.

Some additional covenants were modified to accommodate Equinix's potential conversion to a real estate investment trust, the filing noted.

Equinix is a Redwood City, Calif.-based provider of data center services.

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