Published on 11/19/2015 in the Prospect News High Yield Daily.
New Issue: Equinix sells upsized $1.1 billion 5 7/8% 10-year notes at par
By Paul A. Harris
Portland, Ore., Nov. 19 – Equinix Inc. priced an upsized $1.1 billion issue of 10-year notes (B1/BB) at par to yield 5 7/8% on Thursdsay, according to market sources.
The issue size was increased from $1 billion.
The yield printed in the middle of the 5¾% to 6% yield talk, and on top of initial guidance in the high 5% yield context.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets LLC were the joint bookrunners.
The Redwood City, Calif.-based interconnection and data center company plans to use the proceeds, along with $490 million of cash on hand, a $700 million term loan and $750 million of proceeds from the sale of common stock, to fund the acquisition of TelecityGroup plc, a London-based carrier-neutral data center and colocation center provider.
Issuer: | Equinix Inc.
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Amount: | $1.1 billion
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Maturity: | Jan. 15, 2026
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Securities: | Senior notes
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Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets LLC
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Co-managers: | TD Securities (USA) LLC, ING Financial Markets LLC, HSBC Securities (USA) Inc., MUFG
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Coupon: | 5 7/8%
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Price: | Par
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Yield: | 5 7/8%
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Spread: | 363 bps
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Call: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2021, then callable at 102.938
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Equity clawback: | 35% at 105.875 until Jan. 15, 2019
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Trade date: | Nov. 19
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Settlement date: | Dec. 4
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Ratings: | Moody's: B1
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| Standard & Poor's: BB
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Distribution: | SEC registered
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Price talk: | 5¾% to 6%
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Marketing: | Quick to market
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