Data center operator Equinix (www.equinix.com) announced on Thursday it has arranged $150 million of revolving credit from three of the largest US banks, including Wells Fargo Bank, NA and HSBC Bank USA.
The move follows another strong quarter for Equinix where it reported a 9 percent increase in quarterly profit from the first quarter with revenues of $394.9 million.
The revolving line of credit has a five-year maturity to September 2016, allowing Equinix to borrow, repay and re-borrow over the entire five-year term.
It also includes a sublimit for letters of credit of $100 million at a rate of 1.99 percent a year.
The company also has the option to increase its credit line up to $100 million, subject to approval by the banks and based on current market conditions.
“We are pleased with the successful completion of this credit facility as it is validation of Equinix’s credit strength even in this currently volatile credit environment,” said Keith Taylor, chief financial officer for Equinix.
Equinix said in July it intends to offer $500 million of senior notes due 2021, where it will use the proceeds for general corporate purposes, such as capital expenditures, working capital and potential acquisitions.