Equinix entered an agreement to purchase a portfolio of 24 data center sites and their operations from Verizon Communications for $3.6 billion in an all cash transaction.
To support the transaction, Equinix entered into a credit facility with Bank of America as administrative agent, a lender and L/C issuer, and various financial institutions, as joint lead arrangers and book runners.
The agreement provided for a senior secured credit facility comprised of a $1.5 billion senior secured multi-currency revolving credit facility, a $500.0 million senior secured term A loan facility in four foreign currencies and a senior secured term B loan facility consisting of a £300.0 million ($366.36 million) tranche and a $250.0 million tranche. Equinix may borrow up to €1.0 billion ($1.04 billion) in additional term B loans.
Equinix expects to borrow the full €1.0 billion ($1.04 billion) of term B-2 loans on or about January 6, 2017, subject to the confirmation of lender commitments on the borrowing date and the satisfaction of customary conditions to borrowing.
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 Verizon Communications’ colocation services business at 24 data center sites consisting of 29 data center buildings across 15 metro areas located in the U.S., Brazil and Colombia.