Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In July and August 2021, Switch, Inc. issued an aggregate of 3.7 million and 2.4 million shares, respectively, of Class A common stock to members in connection with such members’ redemptions of an equivalent number of Common Units and corresponding cancellation and retirement of an equivalent number of shares of Class B common stock. Such retired shares of Class B common stock may not be reissued. The redemptions occurred pursuant to the terms of the Switch operating agreement entered into in connection with the Company’s IPO.

In July 2021, Switch, Ltd. entered into a third amendment to the amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent, and certain other lenders, to, among other things, extend the maturity of its revolving credit facility to July 2026, extend the maturity of its term loan facility to July 2028, and reduce the applicable margin on its revolving and term loan credit facilities.

In August 2021, Switch, Inc.’s Board of Directors declared a dividend of $0.0525 per share of Class A common stock, for a total estimated to be $7.2 million, to be paid on August 31, 2021 to holders of record as of August 19, 2021. Prior to the payment of this dividend, Switch, Ltd. will make a cash distribution to all holders of record of Common Units, including Switch, Inc., of $0.0525 per Common Unit, for a total estimated to be $12.7 million.