Equinix looking to exchange remaining $147.2 million of notes for stock

New York, Aug. 14 - Equinix, Inc. said it is looking to exchange its remaining 13% senior notes due 2007 for stock, possibly as much as the entire $147.2 million of the debt still outstanding.

The Mountain View, Calif. internet exchange service provider said in a filing with the Securities and Exchange Commission that it is in discussion "with a number of the remaining holders" of the notes and added that the investors have indicated a willingness to participate in an exchange.

On June 12 the company filed a proxy statement with the SEC seeking stockholder approval for the issuance of 15 million shares of stock to retire further notes. Equinix at the time had 96.9 million shares outstanding.

But in Wednesday's filing Equinix said it will likely need to "substantially" increase the number of shares if it is retire most or all of the outstanding notes.

The company originally sold $200 million principal amount of the notes in December 1999. In the first half of the year it retired $52.8 million of the notes in exchange for 16.0 million shares and $2.5 million of cash.

Equinix added that retiring the notes would save $19.1 million a year in interest payments.

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