REDWOOD CITY, Calif., Feb. 25, 2021 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company, today announced that it priced €1.1 billion principal amount of notes across two tranches in its second green bond offering. The green bonds will be used to help advance the company's longstanding commitment to sustainability leadership and reducing its environmental impact. The offering is expected to close on March 10, 2021, subject to the satisfaction of customary closing conditions.
The €500 million 0.250% Senior Notes due 2027 and €600 million 1.000% Senior Notes due 2033 have a weighted average interest cost of 0.66%, representing a 2.215% reduction in cost relative to Equinix's existing Euro-denominated Senior Notes.
Equinix intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects, with disbursements covering project expenditures for up to two years preceding the issuance date of the notes and until and including the maturity date of the notes, including the development and redevelopment of such projects. Pending allocation, Equinix expects to use approximately €509.4 million of the net proceeds from this offering to fund the redemption of all of its outstanding 2.875% 2026 Euro Senior Notes, including the payment of the premium and accrued interest to the redemption date and the balance for working capital and other general corporate purposes. The refinancing will result in €11.1 million of annual interest savings.
For the offering of the bonds, Barclays Bank PLC, Deutsche Bank AG, London Branch, HSBC Bank plc, and ING Bank N.V. served as joint book-running managers, Merrill Lynch International, Citigroup Global Markets Limited, Goldman Sachs & Co. LLC, J.P. Morgan Securities plc, MUFG Securities EMEA plc, RBC Europe Limited, SMBC Nikko Capital Markets Limited, The Toronto-Dominion Bank, BNP Paribas, Mizuho International plc, Morgan Stanley & Co. International plc, Scotiabank Europe plc, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities International Limited served as bookrunners. ING served as sole Green Structuring Advisor.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the bonds or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. In addition, this press release is not an offer to purchase or a notice of redemption with regard to any outstanding notes or any other securities.
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.
This press release contains forward-looking statements that are based on Equinix's current expectations, including statements regarding the offering of the bonds, its sustainability objectives, the receipt and use of the net proceeds from the offering of the bonds and the consummation of any redemptions of outstanding notes. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including market conditions, customary closing conditions and other factors. In particular, there can be no assurance that Equinix will complete the offering of the bonds. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors that could affect Equinix and its results is included in Equinix's filings with the SEC. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
SOURCE Equinix, Inc.