New Issue: Equinix upsizes offering, prices $750 million eight-year notes at par to yield 8 1/8%

By Paul A. Harris

St. Louis, Feb. 26 - Equinix, Inc. priced an upsized $750 million issue of eight-year notes (Ba2/B+/) at par to yield 8 1/8% on Friday, according to market sources.

The yield printed at the wide end of the 8% area price talk.

Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. were the joint bookrunners for the deal, which was upsized from $500 million.

Co-managers were Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., ING and RBS Securities Inc.

Proceeds will be used for general corporate purposes, which may include expansion capital expenditures and debt repayment, including debt expected to be assumed in connection with the planned acquisition of Switch and Data.

Equinix is a Foster City, Calif.-based provider of network neutral colocation, interconnection and managed IT infrastructure services.

Issuer:	Equinix, Inc.
Amount:	$750 million, increased from $500 million
Maturity:	March 1, 2018
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities Inc.
Co-managers:	Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., ING, RBS Securities Inc.
Coupon:	8 1/8%
Price:	Par
Yield:	8 1/8%
Spread:	485 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until March 1, 2014, then callable at 104.0625, 102.0313, declining to par in 2016
Equity clawback:	For up to 35% at 108.125 until March 1, 2013
Trade date:	Feb. 26
Settlement date:	March 3
Ratings:	Moody's: Ba2
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	8% area

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