S&P Global Ratings affirmed all the ratings of Equinix Inc., including the BB+ corporate credit rating, following the company's plans for the launch of a €1.0 billion public offering of senior notes due 2028.
Simultaneously, the rating agency assigned a BB+ issue-level rating and recovery rating of 3 to the proposed notes. Proceeds from the issuance will be channeled toward repayment of existing secured debt, which will result in S&P's rating withdrawal on the term loan B.
Meanwhile, the outlook on all ratings was revised to positive from stable. The revision reflects a positive momentum in Equinix's business, a credible deleveraging trajectory supported by its recent $750 million at-the-market equity program, and its commitment to raising ownership of assets to at least 50% in the future.
The positive outlook supports Equinix's plan to reduce leverage to around 4.0x by 2018-end.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
