Bulletin: Equinix Inc. Ratings Are Unaffected By Its Plan To Acquire Four Dallas Infomart Data Centers

NEW YORK (S&P Global Ratings) Feb. 15, 2018--S&P Global Ratings said today that all ratings, including its 'BB+' corporate credit rating, and positive outlook on Redwood City, Calif.-based colocation and interconnection provider Equinix Inc. are unaffected by the company's planned acquisition of four data centers, known as the Dallas Infomart, for $800 million. This comes on the heels of the December 2017 announcement that Equinix has agreed to purchase 10 data centers in Australia, known as Metronode, from Ontario Teachers' Pension Plan for $792 million. Although we view both acquisitions favorably from a business standpoint, the debt financing, combined with relatively high multiples paid, has a negative effect on near-term credit ratios. Combined, these largely debt-financed acquisitions will cause pro

...NEW YORK (S&P Global Ratings) Feb. 15, 2018--S&P Global Ratings said today that all ratings, including its '##+' corporate credit rating, and positive outlook on Redwood City, Calif.-based colocation and interconnection provider Equinix Inc. are unaffected by the company's planned acquisition of four data centers, known as the Dallas Infomart, for $800 million. This comes on the heels of the December 2017 announcement that Equinix has agreed to purchase 10 data centers in Australia, known as Metronode, from Ontario Teachers' Pension Plan for $792 million. Although we view both acquisitions favorably from a business standpoint, the debt financing, combined with relatively high multiples paid, has a negative effect on near-term credit ratios. Combined, these largely debt-financed acquisitions will cause pro forma leverage to rise by about 0.5x, making it unclear whether lease-adjusted leverage can fall below our 4.25x upgrade trigger by the end of 2018, compared with previous expectations...

Bulletin