January 3, 2007
Equinix Closes Additional Financing for Washington, D.C. Area Expansion
FOSTER CITY, Calif. — January 3, 2007 — Equinix, Inc. (Nasdaq: EQIX), the leading provider of network-neutral data centers and Internet exchange services, today announced that it has received $40 million in additional financing for the expansion of its Washington, D.C. area data center campus as originally outlined in an announcement on September 18, 2006.
Equinix is increasing the existing mortgage on its Washington, D.C. area campus from $60 million to $100 million, on the same terms as the initial mortgage, which is a fixed rate of 8% and a 20-year term. Equinix intends to use the additional funding as part of its previously announced expansion strategy for the D.C. area.
Equinix is building out an existing shell on the campus and intends to open the new Internet Business Exchange™ (IBX®) center for customers this month. The Washington, D.C. area campus is located in the Dulles Corridor and is home to many of the region's technology companies. The new IBX will add approximately 100,000 gross square feet and increase sellable cabinets by 1,700 to meet increasing demand in the Washington, D.C. area. Separately, the company received rezoning approval over the past summer, enabling Equinix to increase its build out capacity on the campus by approximately 100,000 square feet.
“The receipt of financing for the new Washington, D.C. area IBX, in addition to the $110 million in financing for our Chicago build, which we expect to close in the next few weeks, will enable us to execute on our vision and maximize flexibility in managing our expansion plans without dilution to our shareholders,” said Peter Van Camp, CEO of Equinix. “The new Washington, D.C. area IBX will accommodate the strong pipeline already built for this center and solidify our position as the leading provider of colocation and network exchange services.”
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc.