New Issue: Equinix sells upsized $1.1 billion 5 7/8% 10-year notes at par

By Paul A. Harris

Portland, Ore., Nov. 19 – Equinix Inc. priced an upsized $1.1 billion issue of 10-year notes (B1/BB) at par to yield 5 7/8% on Thursdsay, according to market sources.

The issue size was increased from $1 billion.

The yield printed in the middle of the 5¾% to 6% yield talk, and on top of initial guidance in the high 5% yield context.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets LLC were the joint bookrunners.

The Redwood City, Calif.-based interconnection and data center company plans to use the proceeds, along with $490 million of cash on hand, a $700 million term loan and $750 million of proceeds from the sale of common stock, to fund the acquisition of TelecityGroup plc, a London-based carrier-neutral data center and colocation center provider.

Issuer:	Equinix Inc.
Amount:	$1.1 billion
Maturity:	Jan. 15, 2026
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets LLC
Co-managers:	TD Securities (USA) LLC, ING Financial Markets LLC, HSBC Securities (USA) Inc., MUFG
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	363 bps
Call:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2021, then callable at 102.938
Equity clawback:	35% at 105.875 until Jan. 15, 2019
Trade date:	Nov. 19
Settlement date:	Dec. 4
Ratings:	Moody's: B1
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	5¾% to 6%
Marketing:	Quick to market

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