Carrier neutral datacenter giant Equinix (NASDAQ:EQIX, news, filings) is raising yet more money, announcing today its intention to offer $500M in senior notes due 2021. They included the usual laundry list of potential uses – capital expenditures, working capital and potential acquisitions – as well as the potential repayment of their 2.5% converts which mature next year. Those converts total only $250M and would convert to stock above $112. They have $450M on the balance sheet, so clearly they have plans for the money beyond a mere refinancing.
So why is Equinix padding its coffers now? I don’t see them making any big M&As from here, and they’re already expanding their datacenter footprint organically on almost every front. I suspect it is just that the debt markets are currently rather favorable, and they haven’t had much difficulty finding places to put their cash to work in the past few years.
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Categories: Datacenter · Financials
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Wow What I could do with $10M
“Equinix increases offering by $250 mln and prices $750 mln of 7% Senior Notes due 2021”.
Repayment of convertible notes, organic growth, but I also see them opening new markets in the next few quarters.