Story image

Equinix granted €1B in loans to offset Verizon data center buy

10 Jan 17

Equinix has recently unveiled that it borrowed the full €1.0 billion in additional senior secured term B loans as recently announced. 

According to the company, the Term B-2 Loans bear interest at a rate equal to EURIBOR plus a margin of 3.25%.

Equinix expects to use the proceeds of the Term B-2 Loans to pay a portion of the purchase price for Equinix's acquisition of a portfolio of data center sites and their operations from Verizon Communications Inc

In addition to this particular borrowing, Equinix decreased the borrowing cost of its existing senior secured term loan B facility (the "Term B-1 Facility") effective on December 22, 2016. 

“The interest rate margin applicable to the loans borrowed under the Term B-1 Facility in US Dollars (of which $248,125,000 were outstanding as of December 31, 2016) was reduced from 3.25% to 2.50% and the LIBOR floor applicable to such loans was reduced from 0.75% to zero,” a company statement read.

Keith Taylor, Chief Financial Officer of Equinix, says that their ability to opportunistically access the European debt markets has enabled Equinix to secure low-cost, long-term funds for a portion of Equinix's purchase of Verizon's data center sites and operations.  

“This Euro-denominated debt also provides a natural hedge to protect the economic value of our European investments,” he explains.

“Also, we're delighted with the quality of investors that participated in this debt transaction and will work expeditiously to finance the remaining portion of the acquisition cost related to the Verizon asset acquisition."

The new world of edge data centre management
Schneider Electric’s Kim Povlsen debates whether the data centre as we know it today will soon cease to exist.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
SUSE partners with Intel and SAP to accelerate IT transformation
SUSE announced support for Intel Optane DC persistent memory with SAP HANA.
Inspur uses L11 rack level integration to deploy 10,000 nodes in 8 hours
Inspur recently delivered a shipment of rack scale servers of more than 10,000 nodes to the Baidu Beijing Shunyi data center within 8 hours.
How HCI helps enterprises stay on top of data regulations
Increasing data protection requirements will supposedly drive the demand for Hyper-Converged Infrastructure solutions across the globe.
Vodafone and PNSol champion new ‘invisble network’ broadband project
"As an industry, we've increased the speed of broadband to one gigabit and beyond, which is a remarkable achievement, but we now have to look beyond speed."
Top 3 cloud computing predictions – what’s in store for 2019?
Virtustream's Deepak Patil shares his predictions for how cloud computing will evolve in 2019.
Rubrik welcomes $261m funding for new market expansion
The company intends to use the funds from new investor Bain Capital Ventures will go toward future innovation and expansion.