Bulletin: Equinix Inc. Ratings Are Unaffected By Its Purchase Of Bit-isle Inc.

NEW YORK (Standard&Poor's) Sept. 8, 2015--Standard&Poor's Ratings Services said today that there is no immediate ratings impact on Equinix Inc. (BB/Stable/--) following the announcement that the company, through a Japanese subsidiary, has commenced a cash tender offer for all shares of Tokyo-based data center operator Bit-isle Inc. The equity purchase price is a cash consideration of JPY922 or approximately $280 million. Bit-isle operates six data centers and will add capacity and network density in Tokyo, where Equinix currently operates five data centers. The announcement follows Equinix's offer in May 2015 to acquire U.K.-based data center operator TelecityGroup plc for 1,145.0 pence per share or £2.35 billion. Pro forma for both transactions, we estimate that adjusted debt

...NEW YORK (Standard & Poor's) Sept. 8, 2015--Standard & Poor's Ratings Services said today that there is no immediate ratings impact on Equinix Inc. (##/Stable/--) following the announcement that the company, through a Japanese subsidiary, has commenced a cash tender offer for all shares of Tokyo-based data center operator Bit-isle Inc. The equity purchase price is a cash consideration of JPY922 or approximately $280 million. Bit-isle operates six data centers and will add capacity and network density in Tokyo, where Equinix currently operates five data centers. The announcement follows Equinix's offer in May 2015 to acquire U.K.-based data center operator TelecityGroup plc for 1,145.0 pence per share or ú2.35 billion. Pro forma for both transactions, we estimate that adjusted debt (including pro forma operating leases) to EBITDA (before synergies) could increase to the 4.7x-4.8x area for 2016. Our current leverage threshold for a downgrade of Equinix is above 5.0x adjusted debt to EBITDA...

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