Published on 2/28/2013 in the Prospect News High Yield Daily.
New Issue: Equinix sells upsized $1.5 billion seven-, 10-year senior notes
By Paul A. Harris
Portland, Ore., Feb. 28 - Equinix, Inc. priced an upsized $1.5 billion two-part offering of senior notes (Ba3/existing BB-) on Thursday, according to a market source.
The deal included a $500 million tranche of seven-year notes, which priced at par to yield 4 7/8%. The yield printed at the tight end of the 4 7/8% to 5 1/8% yield talk.
In the long tranche, Equinix priced $1 billion of 10-year notes at par to yield 5 3/8%. The yield printed at the wide end of yield talk, which had the 10-year notes coming 37.5 basis points to 50 bps behind the seven-year notes.
J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BofA Merrill Lynch and Deutsche Bank Securities Inc. were the joint bookrunners for the quick-to-market deal, which was upsized from $1 billion.
The Redwood City, Calif.-based provider of global data center services plans to use the proceeds to redeem its 8 1/8% senior notes due 2018 and for general corporate purposes.
| Issuer: | Equinix, Inc.
|
| Amount: | $1.5 billion, increased from $1 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., BofA Merrill Lynch, Deutsche Bank Securities Inc.
|
| Co-managers: | Evercore Group LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., RBC Capital Markets, LLC, UBS Securities LLC
|
| Trade date: | Feb. 28
|
| Settlement date: | March 5
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: existing BB-
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | April 1, 2020
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 365 bps
|
| First call: | April 15, 2017 at 102.438
|
| Price talk: | 4 7/8% to 5 1/8%
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Maturity: | April 1, 2023
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 349 bps
|
| First call: | April 1, 2018 at 102.688
|
| Price talk: | 37.5 bps to 50 bps behind the seven-year notes
|
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