Equinix, a global interconnection and data center company, borrowed the full €1.0 billion ($1.053 billion) in additional senior secured term B loans to be used for its Verizon asset acquisition.

According to a related filing, Bank of America served as administrative agent, lender and L/C issuer for a syndicate of lenders.

The term B-2 loans bear interest at a rate equal to EURIBOR plus a margin of 3.25%. Equinix expects to use the proceeds of the term B-2 loans to pay a portion of the purchase price for Equinix’s acquisition of a portfolio of data center sites and their operations from Verizon Communications, as previously announced by Equinix.

In addition to the €1.0 billion ($1.053 billion) borrowing , Equinix decreased the borrowing cost of its existing senior secured term loan B facility (the term B-1 facility) effective December 22, 2016. The interest rate margin applicable to the loans borrowed under the term B-1 facility in U.S. dollars (of which $248,125,000 were outstanding as of December 31, 2016) was reduced from 3.25% to 2.50% and the LIBOR floor applicable to such loans was reduced from 0.75% to zero.

“Our ability to opportunistically access the European debt markets has enabled Equinix to secure low-cost, long-term funds for a portion of Equinix’s purchase of Verizon’s data center sites and operations. This Euro-denominated debt also provides a natural hedge to protect the economic value of our European investments,” said Equinix CFO Keith Taylor.