Fitch assigns BB/RR4 to Equinix notes

Fitch Ratings said it assigned a BB/RR4 rating to Equinix, Inc.'s proposed issuance of benchmark-size senior unsecured notes with anticipated maturity of 10 years.

Together with the €1 billion term loan issued on Jan. 6 and an anticipated equity issuance, the company will use the proceeds to fund the previously announced $3.6 billion acquisition of data centers from Verizon.

Equinix's long-term issuer default rating is BB with a stable outlook.

The actions affect about $10.5 billion of total debt, including the $1.5 billion undrawn revolving credit facility and $1.5 billion of capital leases.

Fitch said the rating and stable outlook consider in large part the successful completion of a $1.75 billion common stock offering to fully fund the Verizon data centers acquisition that is expected to close by mid-2017, and that Equinix's leverage pro forma for the acquisition financing will remain within the expectations of the current BB issuer default rating.

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