Equinix terminates all remaining lending commitments under $750m credit agreement
On June 16, 2020, Equinix terminated all remaining lending commitments under the Credit Agreement the company entered into on April 15, 2020.
Global interconnection and data center company Equinix Inc (NASDAQ:EQIX) has announced the termination of a credit agreement.
As FinanceFeeds has reported, on April 15, 2020 Equinix entered into a Credit Agreement, by and among Equinix, as borrower, a syndicate of financial institutions, as lenders, MUFG Bank, Ltd., as administrative agent, and MUFG Union Bank, N.A., Sumitomo Mitsui Banking Corporation, TD Securities (USA) LLC and Mizuho Bank, Ltd., as joint lead arrangers, which provided for senior unsecured 364-day term loan facilities in an aggregate principal amount of up to $750 million.
On June 12, 2020, Equinix repaid in full all amounts that were outstanding under the Credit Agreement, and on June 16, 2020, terminated all remaining lending commitments under the Credit Agreement.
Let’s recall that the facilities are common forms of short-term pro rata bank debt which enhance Equinix’s overall liquidity and increase its financial flexibility. The company plans to use the net proceeds from the facilities for working capital, capital expenditures, acquisitions and other general corporate purposes. On the Closing Date (April 15, 2020), Equinix borrowed $391 million and €100 million in two separate borrowings under the Closing Date Facility.
