June 12, 2002 -- Internet interconnection provider Equinix, Inc. today continued its war on debt, announcing that it has retired an additional $10 million of its senior notes.
The company also said it will seek approval to issue up to 15 million new shares of common stock for use in retiring additional debt. Equinix currently has 96.9 million shares outstanding, which were priced at 43 cents in early trading today.
Earlier this year Equinix announced $42 million in stock-for-debt exchanges, which followed a $45 million repayment of the senior credit facility last October.
"As stated on our last quarterly earnings call, we continue to aggressively pursue opportunities to take debt out of the business," said Peter Van Camp, chairman and CEO of Equinix. "The ability to issue additional shares of our common stock will give us greater flexibility and options to de-leverage the company.
Equinix said it had no specific plans for future debt swaps at the current stock price, but said "the availability of additional authorized shares will enable us to take advantage of favorable debt for equity exchange opportunities as market conditions improve."
Equinix provides Internet exchange services that allow networks, Internet infrastructure companies, enterprises and content providers to grow, manage and control their networks.