Equinix has raised €2.5 billion through four euro-denominated bond offerings, adding debt with maturities from 2028 to 2038. The notes were issued by an indirect, wholly owned subsidiary and are fully guaranteed by Equinix.
The company intends to use an amount equal to the net proceeds to finance or refinance eligible green projects. Until that money is allocated, it may be held in cash or government securities, used under Equinix’s treasury policy, or applied to repay existing borrowings.
Key details
- Four bond tranches: Equinix issued €650 million of 4.15% notes due November 2028; €700 million of 4.80% notes due February 2033; €500 million of 5.10% notes due November 2035; and €650 million of 5.45% notes due November 2038.
- Interest payments: The notes pay interest annually. Payments on the 2028, 2035 and 2038 bonds begin in November 2027; payments on the 2033 bonds begin in February 2027.
- Hedging on longer maturities: Equinix hedged part of the interest-rate risk on the 2035 and 2038 notes. After accounting for the estimated hedge impact, the company expects effective all-in rates of 4.91% on the 2035 notes and 5.42% on the 2038 notes.
- Guarantee and ranking: Equinix guarantees the notes on an unsecured basis. They are senior unsecured obligations of the issuing subsidiary, but rank behind liabilities at that subsidiary’s own subsidiaries, if any. Equinix’s guarantee ranks equally with its other unsecured, unsubordinated debt, while remaining effectively behind its secured debt and structurally behind liabilities of its other subsidiaries.
- Early redemption: The issuer may redeem the notes before maturity, generally at principal plus accrued interest and a make-whole premium. The premium does not apply to the 2033 notes during the final two months before maturity, or to the 2035 and 2038 notes during the final three months before maturity.
- Change of control protection: If a defined change-of-control event occurs, the issuer must offer to buy the applicable notes for 101% of principal, plus accrued interest.
- Debt covenants: The indentures include limits, subject to exceptions, on liens, certain asset sales and combinations, and sale-and-leaseback transactions.
What changes for investors: Equinix has added €2.5 billion of unsecured debt across four maturity dates, creating scheduled interest and principal obligations in euros. The stated green-project use applies to an amount equal to net proceeds; until the funds are allocated, Equinix may use them for general treasury purposes or to repay borrowings.