Equinix exchanges further $17 million of notes for equity

New York, April 18 - Equinix, Inc. said it exchanged a further $17 million of its 13% senior notes due 2007 for equity, bringing the total of notes retired "at significant discounts" to $42 million.

In the latest exchange, the Mountain View, Calif. Internet exchange services provider issued 6.7 million shares of common stock for the notes. Total shares outstanding is now 96.8 million.

In the first quarter Equinix exchanged $25 million of the notes for stock.

Equinix also noted it repaid $45 million of its senior credit facility in October 2001.

The debt reduction actions overall will cut interest expense by $8.7 million a year.

"In a short amount of time, we have substantially reduced our outstanding debt-by nearly 25% - on terms that we consider very favorable to our stockholders," said Peter Van Camp, chairman and chief executive officer of Equinix, in a news release.

Van Camp said Equinix is looking for further opportunities to deleverage but he added that he does not expect further debt for equity exchanges at the current stock price. Equinix stock closed at $0.68 Wednesday.

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