Exhibit 99.1
Media Contacts: Investor Relations Contact
Maureen O'Brien Melanie Mock
Equinix, Inc. Equinix, Inc.
(650) 316-6043 (650) 316-6099
mobrien@equinix.com mmock@equinix.com
- -------------------
David Fonkalsrud
K/F Communications, Inc.
(415) 255-6506
dave@kfcomm.com
FOR IMMEDIATE RELEASE
EQUINIX RETIRES $25 MILLION IN SENIOR NOTES
ACCELERATING TIME TO PROFITABILITY
Company Retires Notes at Fraction of Face Value,
Reducing Debt Service by Nearly $45 Million and Increasing Liquidity
Mountain View, CA - March 7, 2002 -- Equinix, Inc. (Nasdaq: EQIX), the leading
provider of core Internet exchange services, today announced that the company
has retired $25 million of its 13% Senior Notes due in 2007 in exchange for
approximately 9 million shares of Equinix's common stock. The total number of
common stock shares outstanding upon completion of the exchange is approximately
89 million shares.
The retirement of these Senior Notes will result in a savings of approximately
$3.25 million per annum in interest expense, and will be realized over the full
year beginning in FY2002. In total, Equinix has reduced its interest payments on
the retired Senior Notes beginning January 2002 through December 2007 by $19.5
million. Together with the $25.0 million in principal payments that would
otherwise have come due in December 2007, Equinix has reduced its debt service
on the retired Senior Notes by nearly $45 million.
"As indicated in our last earnings call, we are driving to become profitable, on
a net income basis, in the first half of 2003," said Peter Van Camp, chairman
and CEO of Equinix. "The retirement of $25 million of our Senior Notes at
significant discounts, together with the $45 million paydown of our senior
credit facility in fourth quarter 2001, accelerates the company's time to
profitability and increases the likelihood of Equinix reaching cash flow
positive by the end of this year."
About Equinix
Equinix is the leading provider of core Internet exchange services that allow
networks, Internet infrastructure companies, enterprises and content providers
to grow, manage and control their network and Internet operations for
unparalleled performance. Through the company's seven Internet Business
Exchange(TM) (IBX(R)) centers, customers can directly interconnect with the
providers that serve over 90% of the world's Internet networks and users for
their critical peering, transit and traffic exchange requirements. These
interconnection points facilitate the highest performance and growth of the
Internet by serving as neutral and open marketplaces for Internet infrastructure
services, allowing customers to expand their businesses while reducing costs.
Network and service provider customers include AT&T, Akamai, Cable & Wireless,
EDS, EYT, Genuity, IBM, Level3, Loudcloud, QWEST, UUNET/WorldCom and others.
Enterprise and content provider customers include Associated Press, Charles
Schwab, Google, MSN, Washingtonpost.Newsweek Interactive, and Yahoo! For more
information, visit the company's Web site at www.equinix.com.
Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business
Exchange and Equinix GigE Exchange are trademarks of Equinix, Inc.
# # #
This press release contains forward-looking statements, including statements
related to Equinix's financial outlook. Actual results may differ from
expectations due to a number of factors, including: the challenges of building
and operating IBX centers and developing, deploying and delivering Equinix
services; competition from existing and new competitors; the risk that customers
who have placed orders may not install or may delay installations; and the
ability to deliver services when requested by our customers. The matters
discussed in this press release also involve risk and uncertainties described 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.