Equinix exchanges $25 million of 13% notes for equity

New York, March 7 - Equinix, Inc. said it retired $25 million of its 13% senior notes due 2007 by exchanging them for nine million shares of common stock.

The Mountain View, Calif. provider of internet exchange services said the action will save $3.25 million a year in interest expense.

After the exchange, Equinix has 89 million shares outstanding.

The company also noted that it had paid down $45 million of its senior credit facility in the fourth quarter of 2001.

"As indicated in our last earnings call, we are driving to become profitable, on a net income basis, in the first half of 2003," said Peter Van Camp, chairman and chief executive officer of Equinix, in a news release. The debt reduction "accelerates the company's time to profitability and increases the likelihood of Equinix reaching cash flow positive by the end of this year."

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