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Equinix Offering Nets $75M

Carrier Hotels Staff Posted Feb 11, 2004

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Equinix said yesterday that it raised $75 million through the sale of convertible debt, and used $30 million of the proceeds to retire the remainder of its high-yield notes. The Internet exchange operator also plans to pay down its senior credit facility and two other loans.

Equinix said the purchasers of the new debt have 30 days to decide if they'd like to purchase an additional $11.25 million of the issue.

"This offering allows Equinix to significantly reduce our annual interest obligations and further strengthen our financial position as it completes our balance sheet restructuring efforts,” said Peter Van Camp, CEO of Equinix.

Equinix shares closed at $31.01 in trading on the NASDAQ exchange, up 59 cents on the day. The company is benefitting from a sustained program to pay down its debt and a flurry of deals with blue-chip customers.

Equinix has nine US data centers spanning 855,000 square feet. Seven of those centers are cash-flow positive. The company has 275 workers, and a customer list that includes IBM, Google, Sony Online, General Electric, Electronic Arts, Yahoo!, and Microsoft.