Equinix greenshoe exercised, increasing 3% convertibles to $395.99 million

By Laura Lutz

Des Moines, Sept. 26 - Equinix, Inc. announced the full exercise of a $45,986,000 greenshoe in its previously announced offering of convertible subordinated notes due Oct. 15, 2014, bringing the total deal size to $395,986,000.

The convertibles have a 3% coupon and a 60% initial conversion premium.

The company initially announced plans to sell $300 million in convertible notes. The deal was upsized to $350 million when it priced on Sept. 20.

Citi is the bookrunner for the offering. Credit Suisse, Jefferies & Co., UBS Investment Bank and Barclays Capital are co-managers.

The notes have a conversion price of $134.48 and a conversion ratio of 7.4360 shares per note.

The conversion rate will be increased by up to an additional 4.4616 shares per $1,000 principal amount if the stock price at the time of conversion exceeds the base conversion price of $134.48, with the number of additional shares set by a formula.

The convertibles priced at the same time as 3,662,556 shares of Equinix common stock, sold at $84.05 each. There is a 549,383 share over-allotment option on the common stock.

Equinix is a Foster City, Calif.-based network-neutral data centers and internet exchange services provider.

The company plans to use the proceeds for its acquisition of IXEurope plc, a European datacenter operator, which was announced in June.

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