New Issue: Equinix sells upsized $750 million 10-year notes at par to yield 7%

By Paul A. Harris

Portland, Ore., July 6 - Equinix, Inc. priced an upsized $750 million issue of 10-year senior notes (Ba2/BB-/) at par to yield 7% on Wednesday, according to an informed source.

The yield printed at the tight end of the 7% to 7¼% price talk.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $500 million.

The Foster City, Calif.-based data services company plans to use the proceeds for general corporate purposes, including the repayment of its 2½% convertible subordinated notes due 2012, as well as for working capital, potential acquisitions and strategic transactions.

Issuer:	Equinix, Inc.
Amount:	$750 million, upsized from $500 million
Maturity:	July 15, 2021
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Citigroup Global Markets Inc.
Co-managers:	Bank of America Merrill Lynch, Barclays Capital Inc., Evercore Partners, ING, RBS Securities Inc.
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	391 bps
Call features:	Make-whole call at Treasuries plus 50 bps until July 15, 2016, then callable at 103.5, 102.333, 101.167, par on and after July 15, 2019
Equity clawback:	35% at 107.0 until July 15, 2014
Change-of-control put:	101%
Trade date:	July 6
Settlement date:	July 13
Ratings:	Moody's: Ba2
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	7% to 7¼%
Marketing:	Quick to market

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