Equinix Inc., in its third benchmark offering since its debut as an investment-grade issuer last November, has completed a $1.85 billion, three-part offering of SEC-registered senior notes, backing both the refinancing of existing euro-denominated notes and eligible green projects, according to regulatory filings. Equinix set the deal 20-25 bps through early market whispers for the spread levels, across $700 million of 1% five-year notes due Sept. 15, 2025, at T+75, $650 million of 1.55% long seven-year notes due March 15, 2028, at T+110, and $500 million of 2.95% 31-year bonds due Sept. 15, 2051, at T+155.

Equinix intends to use most of the net proceeds to fund the redemption of all of its €1 billion of 2.875% senior notes due 2025 (which it called at 101.438% of par) and €500 million of the €1 billion aggregate principal amount of its 2.875% senior notes due 2026. Any remaining net proceeds will back general corporate purposes.

In addition, it intends to allocate an amount equal to the net proceeds from the offering of the green notes (the 2025 and 2028 tranches) to finance or refinance, in whole or in part, one or more new or existing eligible green projects, with disbursements covering project expenditures for up to two years preceding the issuance date of the green notes and until and including the maturity date of the green notes, filings show.

Today's offering follows the company's $2.6 billion offering of senior notes on June 8, 2020. Proceeds of that placement backed the repayment of outstanding amounts under its 364-day credit facilities (due April 14, 2021), as well as the redemption of all of its €750 million of 2.875% senior notes due March 15, 2024, and its $1.1 billion of 5.875% senior notes due Jan. 15, 2026.

Equinix set the deal firm to talk, across $500 million of 1.25% 2025 notes at T+85, $500 million of 1.8% 2027 notes at T+115, $1.1 billion of 2.15% 2030 notes at T+130, and $500 million of 3% 2050 bonds at T+145, all with July 15 final maturity dates. For reference, the 2.15% 2030 issue changed hands yesterday at T+121, while the 3% 2050 bonds traded last week at T+146, according to MarketAxess.

The Redwood City, Calif.–based real estate investment trust is a carrier-neutral data center hosting provider in more than 50 markets on five continents.

Fitch today said Equinix and other data centers, at present, are relatively sheltered from pandemic-related disruptions, "due to the long-term, contractual nature of the business and strong demand drivers for data center capacity." It also noted that it "positively views Equinix's commitment to prefunding development capex and acquisitions through equity issuances, highlighting the issuer's commitment to its leverage policies," citing the company's $1.7 billion equity raise in May 2020 to fund the acquisition of 13 data centers across Canada from BCE Inc., which is expected to close in the second half of 2020.

Fitch maintains a positive outlook on Equinix's BBB- grade, while the outlook is stable for the respective BBB- and Baa3 ratings at S&P Global Ratings and Moody's. S&P Global Ratings on Sept. 23, 2020, said it viewed the proposed issuance as "modestly credit positive because it will lower interest expense and boost free operating cash flow by around $35 million per year, roughly a 10%-15% improvement to our forecast over the next 12 months."

Equinix garnered rising-star upgrades last year from S&P Global Ratings and Fitch. Both upgrades were to BBB–, from BB+. Meanwhile, Moody's last October boosted its grade by one notch, to Ba1, with a resulting positive outlook, and raised the rating again May 11 to Baa3.

Following on the upgrades last year, Equinix in November 2019 completed a $2.8 billion public offering in three parts to back a debt tender offer for its outstanding 5.375% senior notes due 2022 ($750 million), 5.375% senior notes due 2023 ($1 billion), and 5.75% senior notes due 2025 ($500 million). Pricing was across $1 billion of 2.625% five-year notes due Nov. 18, 2024, at T+100, $600 million of 2.9% seven-year notes due Nov. 18, 2026, at T+120, and $1.2 billion of 3.2% 10-year notes due Nov. 18, 2029, at T+140. Terms: