Equinix to Sell Stock, Notes in Preparation for Verizon Deal

Equinix revealed plans yesterday to raise at least $2.875B in public offerings over the next few weeks. The data center giant is lining up the necessary funds to make their previously announced purchase of a selection of Verizon’s data center footprint.

The assets include the former Terremark business and consist of 29 data centers spanning 2.4M square feet across 24 sites and 12 metro areas.  The footprint is mostly North American plus Sao Paolo down in Brazil.   Nine of those metro areas already have Equinix facilities, while Houston, Culpeper, and Bogota will be some new turf for them.

Equinix will be selling $1.75B of common stock, with underwriters having the usual 30-day option on another 15%, or $262.5M.  At the same time they will be selling $1.125B in senior notes due 2027.  And they’ll be using $1.053B from their existing term loan B borrowings to make up the remaining piece, covering the $3.6B purchase price plus other fees and such.

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Categories: Datacenter · Financials