By Paul A. Harris
Portland, Ore., Nov. 17 – Equinix, Inc. sold an upsized $1.25 billion of senior notes in a two-part, quick-to-market offering on (B1/BB/) on Monday, according to market sources.
A $750 million tranche of seven-year notes priced at par to yield 5 3/8%.
A $500 million tranche of 10-year notes priced at par to yield 5¾%.
Both tranches were priced on top of yield talk.
The two-part deal was upsized from $1 billion.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. were the joint bookrunners.
The Redwood City, Calif.-based interconnection and data center company plans to use the proceeds to redeem its outstanding 7% senior notes due 2021 and for general corporate purposes, which may include capital expenditures, distributions to its stockholders in connection with its proposed conversion to a real estate investment trust, as well as for working capital and for potential acquisitions and strategic transactions.
| Issuer: | Equinix, Inc.
|
| Amount: | $1.25 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., Evercore ISI, Goldman Sachs & Co., RBC Capital Markets, TD Securities
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 20
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 1, 2022
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 334 bps
|
| Call protection: | Three years
|
| Price talk: | 5 3/8% area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 1, 2025
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 341 bps
|
| Call protection: | Five years
|
| Price talk: | 5¾% area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
