Dec, 2002 : Equinix Completes Merger and Transactions

📅 December 31, 2002 - Internet exchange service provider Equinix Inc. (Equinix.com) announced on Tuesday that it has completed the series of deals, first announced in October, designed to reduce the company's debt, extend its position in Asia-Pacific through acquisitions and improve the company's current cash position.

As part of the set of transactions, Singapore Technologies Telemedia Pte Ltd, through its subsidiary STT Communications Ltd., has made a $30 million strategic investment in Equinix.
Equinix also announced that it has merged the assets of Internet infrastructure services company i-STT into its business, and has completed the acquisition of neutral Internet exchange data center services provider Pihana Pacific, which included the contribution of about $26 million in cash. By integrating the two companies, Equinix says it has become the largest global network-neutral Internet exchange services company.
According to Equinix, the company has also retired more than $116 million of its 13 percent senior notes, leaving approximately $30 million in notes outstanding. The company has also reduced its senior credit facility by $8.5 million to $91.5 million, renegotiated certain terms of the credit facility and reset covenants based on current market conditions for the remaining term of the facility.
The company also announced a one for 32 reverse stock split, effective December 31, 2002, directed at bringing the company's stock price in line with Nasdaq listing requirements.
"The $30 million strategic investment from ST Telemedia, $26 million of cash from Pihana's balance sheet, and the significant reduction of debt result in a strengthened balance sheet that provides Equinix with a solid financial base to build a profitable company for long-term growth and value," said Peter Van Camp, CEO of Equinix.