Equinix Inc., the data-center operator which hosts the electronic operations of Direct Edge and other trading venue developers, is looking to borrow $170 million to expand in Asia, Bloomberg Business Week reported late Wednesday.

The Foster City, CA, company has retained DBS Group Holdings Ltd., General Electric Capital Corp., ING Groep NV and Royal Bank of Scotland Group Plc to help it secure the funds, according to Bloomberg.

The five-year loan could come at a high price. Equinix could wind up paying interest of 4 percentage points more than the London interbank offered rate, according to the report.

In its 10-K filing of annual fiscal results to the Securities and Exchange Commission, Equinix last month warned investors that “our substantial debt could adversely affect our cash flows and limit our flexibility to raise additional capital.”

The company said it had “a significant amount of debt and expect to incur additional debt to support our growth.”

As of December 31, 2009, the company said its total indebtedness was approximately $1.5 billion, which exceeded its stockholders’ equity of $1.2 billion. Cash and investments totaled $604.4 million.

The Asian move follows a Feb. 26 announcement by Equinix that it would expand an offering of senior notes due 2018 to $750 million.

Those notes are Equinix’s general senior obligations and rank equal in right of payment to all of its existing and future senior indebtedness and interest will be payable semi-annually.

Equinix said it would use those net proceeds to help fund, including covering indebtedness that it expects to assume in connection with its $825.5 million acquisition of Switch & Data Facilities Company, Inc., announced in October.

Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. are acting as joint book-running managers and BofA Merrill Lynch, Barclays Capital Inc., Goldman, Sachs & Co., ING Financial Markets LLC and RBS Securities Inc. are acting as co-managers for the offering.

Equinix operates 49 data-centers in the U.S., Europe and Asia-Pacific. A rundown of its expansion plans for 2010 can be found here.

All told, Equinix projects it will increase the total number of “sellable cabinets” in its data centers worldwide to 70,520 this year, from 60,800 in 2009.

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