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Equinix increases term B to €1 billion, revises issue price to par
By Sara Rosenberg
New York, Dec. 14 – Equinix Inc. upsized its euro seven-year covenant-light term loan B to €1 billion from €500 million and tightened the issue price to par from 99.75, according to a market source.
Pricing on the euro term loan B is still Euribor plus 325 basis points with no floor.
Along with the new loan, the company is seeking a repricing of its existing U.S. and sterling term loan B borrowings, and the commitment deadline on the repricing was accelerated to 5 p.m. ET on Wednesday from Thursday, the source said.
The U.S. term loan B repricing is talked at Libor plus 250 bps to 275 bps with no floor and a par issue price, and the sterling term loan B repricing is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor and a par issue price.
All of the term loans include 101 soft call protection for six months.
As of Sept. 30, the company had $248.75 million outstanding under its U.S. term loan B and £298.5 million outstanding under its sterling term loan B.
Bank of America Merrill Lynch is the left lead on the deal.
Proceeds from the new euro term loan will be used to help fund the acquisition of a portfolio of 24 data center sites and their operations from Verizon Communications Inc. for $3.6 billion in an all cash transaction.
The repricing will take the U.S. term loan B down from Libor plus 325 bps with a 0.75% Libor floor and the sterling term loan B down from Libor plus 375 bps with a 0.75% Libor floor.
Closing on the acquisition is expected by mid-2017, subject to the customary conditions.
Equinix is a Redwood City, Calif.-based interconnection and data center company.
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