Equinix Inc. secured a roughly US$3.0 billion credit facility and closed its €1.0 billion offering of 2.875% senior notes due Feb. 1, 2026.
The new credit facility, which matures Dec. 12, 2022, comprises a US$2.0 billion senior unsecured multicurrency revolver and a roughly US$1.0 billion senior unsecured multicurrency term loan facility. The revolver includes a $250.0 million sublimit for the issuance of standby letters of credit.
Upon entry into the credit facility Dec. 12, Equinix borrowed £500.0 million and 2.80 billion Swedish kronor under the term loan facility, with part of the proceeds used to refinance outstanding debt under the company's existing 2014 credit facility and to pay transaction costs. The remaining funds from the term loan facility and the proceeds from the revolver are earmarked for working capital, CapEx, acquisitions, dividends, distributions, share buybacks and the issuance of letters of credit, among other general corporate purposes.
Equinix said it fully prepaid all outstanding debt under its 2014 credit facility and terminated the related credit agreement using the net proceeds from the notes offering, a portion of the proceeds from the term loan and about $10 million of cash on hand.
Meanwhile, interest on the notes issued in the just-completed offering is payable in cash every Feb. 1 and Aug. 1, starting Aug. 1, 2018.
Bank of America NA was the administrative agent, a lender and letter of credit issuer under the new credit agreement, while Barclays Bank PLC, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., ING Capital LLC, TD Securities (USA) LLC and Wells Fargo Bank NA were the co-documentation agents. Bank of America, Citibank NA, JPMorgan Chase Bank NA, MUFG and RBC Capital Markets were the joint lead arrangers and book runners.
Merrill Lynch International, Citigroup Global Markets Inc., J.P. Morgan Securities plc, MUFG Securities EMEA plc and RBC Europe Ltd. were the representatives of the underwriters in the notes offering.
As of Dec. 12, US$1 was equivalent to 8.44 Swedish kronor.
