Equinix issues new senior notes due 2029 and 2034

EQUINIX INC (NASDAQ:EQIX), a leading global interconnection and data center company with a market capitalization of $85.82 billion and annual revenue of $8.81 billion, today announced the issuance of €750 million in aggregate principal amount of 3.250% Senior Notes due 2029 and €750 million in aggregate principal amount of 4.000% Senior Notes due 2034. According to InvestingPro analysis, the company currently appears overvalued based on its Fair Value calculations. The notes were issued by Equinix Europe 2 Financing Corporation LLC, a wholly-owned subsidiary of Equinix, and are fully and unconditionally guaranteed by Equinix.

The offering was made pursuant to an underwriting agreement dated May 12, 2025, with the notes issued under an indenture dated March 18, 2024, supplemented by the Fifth Supplemental Indenture for the 2029 Notes and the Sixth Supplemental Indenture for the 2034 Notes, both dated May 19, 2025. InvestingPro data shows that Equinix maintains a healthy current ratio of 1.44 and generates substantial free cash flow of $3.46 billion, indicating strong liquidity position to service its debt obligations. The notes were offered through a Registration Statement on Form S-3, which became effective on March 18, 2024.

Equinix plans to allocate the net proceeds from the offering to finance or refinance new or existing eligible green projects. Until the full allocation, the net proceeds may be used for general corporate purposes, including repayment of existing borrowings.

The 2029 Notes will mature on May 19, 2029, and the 2034 Notes will mature on May 19, 2034, with interest payable annually on May 19, starting in 2026. The notes may be redeemed before maturity, with the redemption price including a make-whole premium, except for redemptions close to the maturity date.

In the event of a change of control triggering event, the issuer must offer to purchase the notes at a price equal to 101% of the principal amount plus accrued interest.

The notes rank equally with all of the issuer’s existing and future unsecured and unsubordinated indebtedness and are structurally subordinated to the liabilities of the issuer’s subsidiaries. The guarantee ranks equally with all other unsecured and unsubordinated indebtedness of Equinix and is effectively subordinated to existing and future secured indebtedness.

The indentures include covenants limiting liens, certain asset sales, mergers, consolidations, and sale and leaseback transactions, subject to certain exceptions. Events of default provisions allow for acceleration of the payment obligations under certain circumstances. With a debt-to-equity ratio of 1.41 and an overall Financial Health Score of "GOOD" according to InvestingPro, which offers comprehensive Pro Research Reports covering over 1,400 US stocks, Equinix demonstrates robust financial management despite its substantial debt position.

This news is based on the information contained in a press release statement.

In other recent news, Equinix reported a strong financial performance for the first quarter of 2025, with revenues reaching $2.2 billion, marking an 8% increase compared to the previous year. The company also announced an adjusted EBITDA of $1.1 billion, which represents 48% of its revenues, and raised its full-year guidance for revenues, adjusted EBITDA, and AFFO. The demand for AI infrastructure played a significant role in Equinix’s performance, with half of its top deals being AI-related. Citi analysts responded positively to these results, raising the price target for Equinix shares from $970 to $990 and maintaining a Buy rating. The analysts noted that the company’s strong pipeline and new bookings, characterized by higher power densities, support the revenue growth projection of 7-8% for the year. Equinix’s management highlighted the favorable demand environment for its services, despite some increased churn in the EMEA region. The company also opened a fully pre-leased asset in Frankfurt, further indicating robust market demand.

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