CLOSES ON MAY 14, 2020
Interconnection and data center company Equinix Inc., has just announced the commencement of a public offering of 2,250,000 shares of its common stock.
At a public price of $665.00 per share, the company plans to use a portion of the net proceeds of the offering to fund the acquisition of selected data center sites and their operations. Equinix said it is currently in advanced discussions with a seller to acquire these data center assets.
If the data center assets acquisition is completed, Equinix will use the remainder net proceeds of the offering for general corporate purposes, which could include repayment of indebtedness, capital expenditures and working capital. However, the company adds that the completion of the offering is not contingent upon the completion of the data center assets acquisition as Equinix intends to use all of the net proceeds for general corporate purposes if the potential acquisition is not completed.
Equinix expects to raise $1.5 billion from the sales of the stated shares, and has granted the underwriters a 30-day option to purchase up to an additional 337,500 shares of its common stock.
As announced, Morgan Stanley, Goldman Sachs & Co. LLC, BofA Securities, Citigroup and J.P. Morgan are acting as joint book-running managers and representatives of the underwriters for the offering.
This offering is coming just few weeks after the company signed a joint venture worth over $1 billion with GIC to develop and operate three data centers in Japan.
In March, Equinix opened its third data center (WA3) in Warsaw, Poland with an investment of about $34 million. In the same month, the company announced the opening of its fourth data center (SG4) in Singapore with an initial launch of 45,400 square foot colocation space that accommodates up to 1,400 cabinets.
In January, Equinix completed the acquisition of three Axtel data centers in Mexico which serve the Mexico City and Monterrey metro areas of Mexico for a total of $175 million.
According to Equinix, the current common stock offering is expected to close on May 14, 2020, subject to customary closing conditions.