Equinix Inc. 'BB+' Rating Affirmed; Outlook Stable; New Senior Unsecured Debt Rated 'BB+' (Recovery Rating: 3)

U.S. data center provider Equinix Inc. plans to fund the previously announced $3.6 billion acquisition of 29 data centers from Verizon with $1.75 billion in equity along with about $2.2 billion in debt. As a result, pro-forma S&P-adjusted leverage will be in line with our expectations for the rating, in the mid 4x-area in 2017. We are affirming all ratings, including the 'BB+' corporate credit rating. We are assigning our 'BB+' issue-level rating and '3' recovery rating to the company's proposed $1.125 billion unsecured notes. The stable outlook reflects our belief that credit metrics will improve only modestly over the next one to two years as higher debt levels to fund expansionary capital expenditures and REIT distributions largely offset significant

...+ U.S. data center provider Equinix Inc. plans to fund the previously announced $3.6 billion acquisition of 29 data centers from Verizon with $1.75 billion in equity along with about $2.2 billion in debt. As a result, pro-forma S&P-adjusted leverage will be in line with our expectations for the rating, in the mid 4x-area in 2017. + We are affirming all ratings, including the '##+' corporate credit rating. + We are assigning our '##+' issue-level rating and '3' recovery rating to the company's proposed $1.125 billion unsecured notes. + The stable outlook reflects our belief that credit metrics will improve only modestly over the next one to two years as higher debt levels to fund expansionary capital expenditures and REIT distributions largely offset significant earnings growth. NEW YORK (S&P Global Ratings) March 7, 2017--S&P Global Ratings today said it affirmed all ratings on Redwood City, Calif.-based Equinix Inc., including the '##+' corporate credit rating. The outlook is stable. At...

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