BofA Agents Equinix $1.5B Facility
Equinix, a global interconnection and data center company, announced the closing of its $1.5 billion five-year senior secured credit facility with a syndicate of eleven financial institutions. The senior credit facility consists of a $1.0 billion senior secured multi-currency revolving credit facility and a $500.0 million amortizing senior secured term loan facility. Equinix borrowed the full amount of the $500.0 million term loan facility at closing.
Bank of America Merrill Lynch, J. P. Morgan Securities and TD Securities (USA) acted as joint lead arrangers and book runners, JPMorgan Chase and TD Securities (USA) acted as co-syndication agents, and Barclays Bank, Citibank, Royal Bank of Canada and ING Bank, Singapore Branch, acted as co-documentation agents for the senior credit facility. Bank of America, is the administrative agent for the senior credit facility.
A portion of the proceeds from the $500.0 million term loan facility was used by Equinix to refinance existing indebtedness (including indebtedness under Equinix’s former $750.0 million senior secured credit facility, which was terminated and replaced by the new $1.5 billion senior secured credit facility) and to pay fees and expenses incurred in connection with the closing of the senior credit facility. Equinix intends to use the remaining proceeds of the term loan facility and the proceeds of borrowings under the revolving credit facility for general corporate purposes, which may include capital expenditures, distributions to its stockholders (including distributions in connection with Equinix’s proposed conversion to a real estate investment trust), working capital and potential acquisitions and strategic transactions.
“We are pleased with the successful completion of this senior credit facility, which increases our liquidity position and enhances our ability to invest in our growth opportunities. We had high caliber financial institutions subscribing to this transaction and the strong demand and recognition for our credit is a testament to Equinix’s steady operating performance and credit strength,” said Keith Taylor, chief financial officer for Equinix.