Equinix buys back $10 million senior notes

New York, June 12 - Equinix, inc. said it retired a further $10 million of its 13% senior notes due 2007. Unlike recent debt reductions where the company exchanged debt for stock, the company used cash in the latest debt reduction.

The Mountain View, Calif. internet exchange service provider said in a filing with the Securities and Exchange Commission that in total it has now retired $52 million of its senior notes at "significant discounts." That figure includes $42 million in debt exchanged for equity that was previously announced in the first half of 2002.

Equinix also said it is asking shareholders to approve issuance of up to 15 million shares of stock to retire further senior notes. The company currently has 96.9 million shares outstanding.

"As stated on our last quarterly earnings call, we continue to aggressively pursue opportunities to take debt out of the business," said Peter Van Camp, chairman and chief executive officer of Equinix, in a statement. "The ability to issue additional shares of our common stock will give us greater flexibility and options to de-leverage the company. While we do not expect to transact any additional debt for equity exchanges in the near term at the current stock trading level, the availability of additional authorized shares will enable us to take advantage of favorable debt for equity exchange opportunities as market conditions improve."

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