Equinix Inc. Unsecured Notes Rated 'BBB-'

NEW YORK (S&P Global Ratings) Nov. 6, 2019--S&P Global Ratings today assigned its 'BBB-' issue-level rating to Equinix Inc.'s proposed unsecured notes, in line with the issuer credit rating because they are pari passu with all other debt. Equinix plans to use proceeds primarily to repay debt and possibly to prefund capital expenditures (capex) to support growth. We view the transaction as modestly credit positive because it will lower interest expense and boost free operating cash flow by about $40 million per year, about a 10% improvement to our 2020 forecast. While Equinix could rely more heavily on debt issuance over the near term to fund acquisitions, dividends and capex, we expect S&P Global Ratings-adjusted debt to EBITDA to remain

...November 6, 2019 NEW YORK (S&P Global Ratings) Nov. 6, 2019--S&P Global Ratings today assigned its '###-' issue-level rating to Equinix Inc.'s proposed unsecured notes, in line with the issuer credit rating because they are pari passu with all other debt. Equinix plans to use proceeds primarily to repay debt and possibly to prefund capital expenditures (capex) to support growth. We view the transaction as modestly credit positive because it will lower interest expense and boost free operating cash flow by about $40 million per year, about a 10% improvement to our 2020 forecast. While Equinix could rely more heavily on debt issuance over the near term to fund acquisitions, dividends and capex, we expect S&P Global Ratings-adjusted debt to EBITDA to remain 3.75x-4.25x (3.9x for the last 12 months ended Sept. 30, 2019). For a detailed analysis, see our full analysis published Feb. 26, 2019....

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