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Quotes & Info
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| EQIX > SEC Filings for EQIX > Form 8-K on 6-Dec-2012 | All Recent SEC Filings |
6-Dec-2012
Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation
On November 30, 2012, Equinix Canada Ltd. ("Equinix Canada"), a wholly-owned subsidiary of Equinix, Inc. ("Equinix"), and 271 Front Inc. entered into a lease agreement (the "Lease Agreement") for approximately 220,000 square feet of data center space in a building to be constructed in Toronto, Canada. The Lease Agreement has an initial fixed term of 15 years after commencement, with options to renew, and a total rent obligation of approximately $141 million over the initial term of the Lease Agreement. Equinix concurrently entered into an Indemnity Agreement whereby Equinix guaranteed the obligations of Equinix Canada under the Lease Agreement.
The Lease Agreement may be terminated by 271 Front Inc. for a period of 60 days after signing.
When completed, the new data center in Toronto will be located in close proximity to Equinix's existing TR1 data center. Equinix expects to invest approximately $42 million to build Phase 1 of the new data center, which will be designed to provide 137,000 square feet of floor space and capacity for more than 675 cabinet equivalents in Phase 1. Equinix anticipates the new data center will open in the fourth quarter of 2014.
Please refer to the description of the Lease Agreement disclosed in Item 1.01 above.
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