Dec. 31, 2002 -- Equinix, Inc. today said it has completed a complex series of deals that will provide the company with a cash infusion, a reduced debt load and an expanded presence in the Asia-Pacific market.
The deals were approved Monday at a shareholders meeting in New York, following the successful completion of a tender offer to retire 85 percent of the company's high-yield debt.
The completion of the related deals with Singapore Technologies Telemedia, Pihana Pacific and Equinix' senior bond holders will secure financial stability for the "new Equinix," and headed off a potential bankruptcy filing had the deals failed.
Equinix CEO Peter Van Camp said the transactions provide the Internet exchange operator with "a solid financial base to build a profitable company for long-term growth and value."
"Significantly, this merger uniquely positions Equinix to provide U.S. and Asia Pacific-based customers with a single-source solution for their Internet infrastructure and IT operations," said Van Camp. "Today, Equinix is the largest network-neutral Internet exchange services company internationally, offering customers comprehensive and seamless network exchange and IT infrastructure services in two of the most important markets in the world."
The deal includes four major components:

• Singapore Technologies Telemedia (ST Telemedia) invests $30 million in Equinix in exchange for 89 million shares of common and preferred stock and warrants to purchase another 29 million shares.
• Equinix acquires Pihana Pacific, which operates Internet exchanges in seven Pacific rim markets. Equinix will issue 64 million shares of common stock to buy Pihana's assets, which include data centers and $26 million in cash.
• Equinix also acquires ST Telemedia's Internet exchange business, i-STT, which includes a data center in Singapore and a joint venture in Bangkok, Thailand. Equinix will issue 88 million shares of common stock to buy i-STT.
• Equinix restructures its debt, using the cash from ST Telemedia and the Pihana deal to retire $116 million of its high-yield bonds and pay down $8.5 million of its bank debt.

While necessary for the company's survival, the deals diluted the value of shares of the company's common stock. As part of the deal, Equinix announced a one-for-32 reverse stock split effective today, which is designed to raise the company's stock price above $1 to meet NASDAQ listing requirements.
Equinix also announced changes to the company's board of directors, which has been expanded to nine seats. New members include Lee Theng Kiat, President and CEO, Singapore Technologies Telemedia, who will serve as chairman of the board; Jean F.H.P. Mandeville, CFO, Singapore Technologies Telemedia and STT Communications; Steven Poy Eng, Program Manager, WAM!NET Government Services, Inc.; and Harry Hopper, Partner, Columbia Capital.
Van Camp continues as CEO and a member of the board. Other continuing board members include Scott Kriens, President and CEO, Juniper Networks; Andy Rachleff, General Partner, Benchmark Capital; and Mike Volpi, SVP, Internet Switching & Services, Cisco Systems.
Equinix, based in Mountain View, Calif., provides core Internet exchange services that allow Internet infrastructure companies, enterprises and content providers to grow, manage and control their networks.