Paolo Gorgo

Equinix Buys Switch and Data - A Billion Dollar Company Is Born

Thanks al lot, Mark. Very kind of you.

To complete the article, here is the link to Tier 1 Research comments about Cramer (there's more than I quoted):

T1R Insight: Cramer blows it with call on Equinix

t1r.com/client/view.ph...

Capital Crossing Preferred Corp: Too Cheap?

another $25 million infusion from Lehman Bros (HT to AeneA):

Docket 3962 - Aurora Bank

The Bank is required to report to the OTS its capital levels as of June 30,
2009 on its next quarterly thrift financial report (the “TFR”). Although the Bank’s condition has
improved as a result of various actions taken by the Bank and LBHI’s prior actions in support of
the Bank, there is a possibility that, due to the effect of fair value accounting, which subjects the
Bank’s capital level to the volatility of the marketplace, the Bank could fall somewhat below the
“well-capitalized” mark that is contemplated in the business plan. To avoid potential adverse
consequences from a dip in the Bank’s capital level on approval of the business plan by the OTS
and to ensure that implementation of LBHI’s business strategy for the Bank is not delayed as a
result, LBHI seeks authorization to make a capital contribution of up to $25 million to the Bank
prior to June 30, 2009. As explained below, LBHI believes that this capital investment is
appropriate and necessary to protect its prior investments in the Bank and to realize the value of
its equity interest in the Bank for the benefit of creditors."

Equinix: Planning Further Expansion?

Thanks, John, for your kind comment.

Yesterday, Equinix announced the exercise of the Overallotment Option for its Convertible Subordinated Notes Due 2016 (an additional $48.75 million aggregate principal amount).

On June 10, 2009, Standard&Poor's Ratings Services assigned its issue-level and recovery ratings to Equinix Inc.'s (B+/Stable/--) new $325 million 4.75% convertible subordinated notes. The issue-level rating is 'B-' (two notches below the company's corporate credit rating).

www.alacrastore.com/st...

Capital Crossing Preferred Corp: Too Cheap?

more info from the bankruptcy court (thanks to AeneA for the heads up) - docket 3193:

"Relief Requested

12. By this Motion, the Debtors seek authorization, but not direction,
pursuant to sections 105(a) and 363(b)(1) of the Bankruptcy Code and Bankruptcy Rules
9019 and 6004, to execute the following actions to support the Bank’s capital level:

• LBHI’s entry into one or more assignment agreements (the
“Assignment Agreements”) with Aurora to transfer all or part of a
portfolio of LBHI’s unencumbered mortgage servicing rights to
Aurora;

• LBHI’s entry into a settlement agreement (the “Settlement
Agreement”) with the Bank and Aurora, pursuant to which LBHI
will convey to and confirm Aurora’s ownership of certain funds;

• LBHI’s investment of cash up to $15 million in one or more capital
contributions (the “Cash Contribution,” and together with the
Assignment Agreement and the Settlement Agreement, the
“Capital Contribution”);

docket 3194:

"ii. As part of its next quarterly financial report, LBB must
report its capital level as of March 31, 2009 to the
Regulators. It is expected that LBB’s capital on such
date will be below the 8% level that is considered to be
adequate under the applicable regulations and required by
the PCA. If the Bank is not in compliance with the PCA,
the Bank’s Regulators may take actions to restrict or
control the Bank’s activities that could jeopardize the
value of LBHI’s equity interest. To preserve the value of
LBHI’s equity interest and to avoid the risks associated
with a failure of the Bank, including the potential
exposure of LBHI’s equity interest in Woodlands, the
Debtors have determined to take certain actions intended
to support the Bank’s capital level on March 31, 2009
and to thereafter maintain the Bank’s capital at the
adequacy level in connection with a long term business
strategy for the Bank (the ¨Capital Maintenance
Actions”). The Capital Maintenance Actions are
primarily non-cash capital contributions.
iii. Ensuring that the Bank’s capital is adequate on March 31,
2009 avoids the risk of regulatory action that could
jeopardize the value of LBHI’s equity interest. Also, by
making the investment prior to the quarter ending on
March 31, 2009, LBHI will obtain the added benefit of
satisfying, starting with the quarter ended March 31,
2009, a portion of the commitment obligation required of
it under the PCA to ensure that the Bank maintains
adequate levels of capital for a period of four consecutive
quarters.
iv. Under Bankruptcy Rule 2002(a), motions to use property
of the estate outside the ordinary course require twenty-
days’ notice. Due to the risks associated with an
inadequate capital level for the Bank on March 31, 2009
and the benefits to the Debtors of the Bank attaining an
adequate capital level on such date, the Debtors require
authorization to take the Capital Maintenance Actions
prior to March 31, 2009."

Capital Crossing Preferred Corp: Too Cheap?

some more news - this is from Reuters:

>>NEW YORK (Reuters) - Bankrupt Lehman Brothers Holdings Inc is auctioning a thrift and an industrial bank it owns, and the process is in the early stages, a source familiar with the matter said on Monday.

The sale of Lehman Brothers Bank FSB, a Delaware-based thrift, and Woodlands Commercial Bank, a Utah industrial bank, is being handled by investment bank Lazard Ltd, the source said.

A transaction will have to go through the U.S. bankruptcy court process, said the source, who asked not to be named because the sale process is not public.

A Lehman spokeswoman said the company was selling all assets as part of Lehman's wind-down in bankruptcy.

"We're looking to realize value whenever we can get it," Lehman spokeswoman Kimberly Macleod said.

"We're going to hold it until someone comes with fair value and the creditors' committee approves it," she said, noting Lazard was running the sales process for this and other assets.

Lazard declined to comment.

Capital Crossing Preferred Corp: Too Cheap?

It looks like LBB (Lehman Brothers Bank) needs additional help to survive. Lehman Brothers Holding has asked the bankruptcy court authorization to support LBB up to an additional $325 million:

(docket 3074)

By this Motion, LBHI seeks authorization, but not direction,
pursuant to sections 105(a) and 363(b)(1) of the Bankruptcy Code and Bankruptcy Rule
6004, to enter into a master repurchase agreement with the Bank (the “Repurchase
Agreement”) under which LBHI will purchase from the Bank a portfolio of residential
mortgage loans for up to an aggregate amount of $325 million

LBHI expects that the cash that will be made available
to the Bank under the Repurchase Agreement will enable Aurora to satisfy its advance
obligations, a significant portion of which will begin to become due on March 16, 2009.

Less than six months ago, the value of LBHI’s equity interest in
the Bank was reported at approximately $1 billion with total assets of approximately $7.2
billion and total liabilities of approximately $6.2 billion. See September 30, 2008 TFR,
Schedule SC. On that same date, the Bank was considered “well capitalized” with a total
risk based capital ratio of 10.57% in full compliance of its capital regulations.
Notwithstanding the decline of the Bank’s capital levels reflected on the Bank’s
December 31, 2008 TFR, the value of LBHI’s equity interest was still reported at
approximately $467 million.

Due to the recent collapse of the financial markets, LBB lacks the
ability to access the funding sources it would normally rely upon to finance Aurora. If
Aurora is not be able to satisfy its monthly Advance Obligations, which will begin to
peak on or about March 16, 2009, Aurora’s Counterparties may, under certain
circumstances, declare Aurora to be in default under the Mortgage Servicing Agreements.
If that happens, the Counterparties could take precipitous actions that would threaten the
value of Aurora’s business and the Bank’s enterprise as a whole and the Bank’s
Regulators may also take regulatory action out of concern that the Bank may no longer be
able to rely on Aurora’s business.

What's Next for the Colocation Sector?

As REIT play, I have always favoured DLR.

DFT may now be interesting as a speculative investment for risk-tolerant investors - there is an interesting heads up here:

www.telecomramblings.c.../

I would still weight very carefully, in my investing decisions, the potential costs the Company might suffer from the suspended building activity.

I see Santa Clara as a nice potential acquisition target (Equinix?) and hope they will move toward restructuring their goals, that they seem uncapable to achieve right now.

Sorry for the delayed response...

What's Next for the Colocation Sector?

The WSJ has a nice article, today, on this subject:

Higher Prices Loom For Data-Site Users

online.wsj.com/article...