Equinix Inc.'s Proposed Unsecured Note Issuance Rated 'BBB-'

NEW YORK (S&P Global Ratings) Sept. 23, 2020—S&P Global Ratings today assigned its 'BBB-' issue-level rating to U.S.-based data center service provider 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 existing debt and for general corporate purposes. We view the transaction as modestly credit positive because it will lower interest expense and boost free operating cash flow by around $35 million per year, roughly a 10%-15% improvement to our forecast over the next 12 months. Our base-case forecast for debt to EBITDA is unchanged at around 3.75x through 2021 but we recognize the potential for this ratio to increase

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