Equinix convertible offering will advance growth opportunities

By Jennifer Lanning Drey

Portland, Ore., June 10 - Equinix, Inc.'s public convertible offering announced Monday was made to help the company move forward with $90 million of unannounced growth projects that have been identified by the company, Keith Taylor, chief financial officer of Equinix, said during a Wednesday investor presentation.

Equinix believes it has growth opportunities in at least 11 of its 18 markets.

"The markets are open today, and that's why we took the option today even though we had enough cash on the balance sheet," Taylor said at the RBC Capital Markets Technology, Media & Communications Conference in San Francisco.

The company hopes the offering will be increased to $375 million through a greenshoe, he said.

Absent a greenshoe, the offering is expected to raise net proceeds of $273 million.

Equinix had $284 million of unrestricted cash at the end of the first quarter.

The company is likely to deploy capital toward the projects over the next 18 months, Taylor said.

The company believes compared to other sources of capital, the convertible offering provided the lowest cost of capital and highest level of flexibility, as there are no related debt covenants, Taylor said.

As previously reported, Equinix has entered into an agreement to sell $325 million of its 4.75% convertible subordinated notes due 2016.

Equinix is a Foster City, Calif.-based provider of network neutral colocation, interconnection and managed internet technology infrastructure services.

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