Equinix Inc.'s Proposed Senior Unsecured Notes Rated 'BB+' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Sept. 1, 2017--S&P Global Ratings today assigned its 'BB+' issue-level rating to Redwood City, Calif.-based data center provider Equinix Inc.'s proposed €750 million unsecured notes due 2025. The recovery rating is '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery for unsecured creditors in the event of a payment default. The 'BB+' corporate credit rating and stable outlook on Equinix remain unchanged. We expect the company to use proceeds from the proposed notes to call $500 million notes due 2020 and for general corporate purposes, which may include expansion capital or acquisitions. While the incremental debt will result in slightly higher leverage initially, we continue to expect S&P-adjusted debt to EBITDA to remain

...NEW YORK (S&P Global Ratings) Sept. 1, 2017--S&P Global Ratings today assigned its '##+' issue-level rating to Redwood City, Calif.-based data center provider Equinix Inc.'s proposed 750 million unsecured notes due 2025. The recovery rating is '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery for unsecured creditors in the event of a payment default. The '##+' corporate credit rating and stable outlook on Equinix remain unchanged. We expect the company to use proceeds from the proposed notes to call $500 million notes due 2020 and for general corporate purposes, which may include expansion capital or acquisitions. While the incremental debt will result in slightly higher leverage initially, we continue to expect S&P-adjusted debt to EBITDA to remain appropriate for the rating at between 4x-5x. This metric was about 4.7x on an annualized basis for the second quarter of 2017 and we continue to expect the metric to approach the low-4x area by the end...

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