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Equinix Borrows 1.0B for Verizon Asset Acquisition

January 12, 2017

Equinix has borrowed the full 1.0 billion in additional senior secured term B loans ("the Term B-2 Loans") as previously announced by Equinix in its Form 8-K filed December 27, 2016. The Term B-2 Loans bear interest at a rate equal to EURIBOR plus a margin of 3.25%. Equinix expects to use the proceeds of the Term B-2 Loans to pay a portion of the purchase price for Equinix's acquisition of a portfolio of data center sites and their operations from Verizon Communications Inc., as previously announced by Equinix in its Form 8-K filed December 6, 2016.

In addition to the 1.0 billion borrowing, Equinix decreased the borrowing cost of its existing senior secured term loan B facility (the "Term B-1 Facility") effective December 22, 2016. The interest rate margin applicable to the loans borrowed under the Term B-1 Facility in US Dollars (of which $248,125,000 were outstanding as of December 31, 2016) was reduced from 3.25% to 2.50% and the LIBOR floor applicable to such loans was reduced from 0.75% to zero. The interest rate margin applicable to the loans borrowed under the Term B-1 Facility in Pounds Sterling (of which 297,750,000 were outstanding as of December 31, 2016) was reduced from 3.75% to 3.00%, with no change to the existing LIBOR floor of 0.75% applicable to such loans.

Bank of America Merrill Lynch acted as left lead arranger for the transactions.

Keith Taylor, Chief Financial Officer, Equinix said, "Our ability to opportunistically access the European debt markets has enabled Equinix to secure low-cost, long-term funds for a portion of Equinix's purchase of Verizon's data center sites and operations. This Euro-denominated debt also provides a natural hedge to protect the economic value of our European investments. Also, we're delighted with the quality of investors that participated in this debt transaction and will work expeditiously to finance the remaining portion of the acquisition cost related to the Verizon asset acquisition."

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