Equinix to raise $2.8b ahead of Verizon asset purchase
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Equinix revealed plans yesterday to raise at least $2.875 billion 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 US operator Verizon’s data center footprint.
The assets include the former Terremark business and consist of 29 data centers spanning 2.4 million 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 $1.75 billion of common stock, with underwriters having the usual 30-day option on another 15%, or $262.5 million.
At the same time they will be selling $1.125B in senior notes due 2027. And they’ll be using $1.053 billion from their existing term loan B borrowings to make up the remaining piece, covering the $3.6B purchase price plus other fees and such.
Questions & Answers
Q.What is the total sum Equinix intends to raise through public offerings?
What is the total sum Equinix intends to raise through public offerings?
Equinix plans to raise at least $2.875 billion through public offerings over the coming weeks, consisting of common stock and senior notes.
Q.Which specific assets is Equinix acquiring from Verizon?
Which specific assets is Equinix acquiring from Verizon?
Equinix is acquiring a selection of Verizon's data center footprint, including the former Terremark business, which comprises 29 data centers.
Q.What is the total area and geographical spread of the acquired data centres?
What is the total area and geographical spread of the acquired data centres?
The acquired data centres span 2.4 million square feet across 24 sites in 12 metro areas. These are mostly in North America, with one in Sao Paolo, Brazil.
Q.How will Equinix finance the total purchase price of the acquisition?
How will Equinix finance the total purchase price of the acquisition?
They will use $1.75 billion from common stock, $1.125 billion from senior notes, and $1.053 billion from existing term loan B borrowings to cover the $3.6 billion purchase price plus fees.
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