Equinix revealed plans yesterday to raise at least $2.875 billion in public offerings over the next few weeks. The data center giant is lining up the necessary funds to make their previously announced purchase of a selection of US operator Verizon's data center footprint.
The assets include the former Terremark business and consist of 29 data centers spanning 2.4 million square feet across 24 sites and 12 metro areas.
The footprint is mostly North American plus Sao Paolo down in Brazil. Nine of those metro areas already have Equinix facilities, while Houston, Culpeper, and Bogota will be some new turf for them.
Equinix will be selling $1.75 billion of common stock, with underwriters having the usual 30-day option on another 15%, or $262.5 million.
At the same time they will be selling $1.125B in senior notes due 2027. And they'll be using $1.053 billion from their existing term loan B borrowings to make up the remaining piece, covering the $3.6B purchase price plus other fees and such.
This article was authored by Rob Powell and was originally posted on Telecomramblings.com
Rob Powell is founder & editor of Telecom Ramblings, which was set up in 2008. The website is dedicated to discussing trends and developments in the telecom industry.