Australian data centre operator NEXTDC (ASX:NXT) reports it has entered into a syndicated facility agreement in relation to a new $400 million senior debt facility to fund ongoing incremental growth for a new facility.
The company says on a pro-forma basis allowing for the new facility, NEXTDC would have liquidity of around $2 billion, including about $464 million in cash, and undrawn facilities of about $1.5 billion.
NEXTDC expects this additional debt capacity will provide the company with additional headroom to fund its medium to longer term growth aspirations.
The company reports it has also received lender approval under its existing $2.5 billion senior debt facilities to favourably amend its existing package of financial covenants and terms to accommodate NEXTDC’s growth aspirations in the Asia Pacific. In addition, NEXTDC notes the new facility was secured on materially the same credit margins and terms as the amended existing facilities.
Under this agreement, HSBC and NAB acted as Mandated Lead Arrangers, Underwriters and Bookrunners (MLAUBs) on the New Facility, which was syndicated to NEXTDC’s existing financiers.
Together, the MLAUBs will arrange and manage the syndication of the Senior Debt Facilities, with Financial Close expected to be achieved in February 2023.
The company also notes Cadence Advisory acted as financial advisor, and Herbert Smith Freehills was the legal adviser to NEXTDC in relation to the transaction.
NEXTDC is an ASX-listed technology company focused on building the infrastructure platform for the digital economy, delivering the critical power, security, and connectivity for global cloud computing providers, enterprises, and government.
The company is a Data Centre-as-a-Service (DCaaS) provider that has been recognised internationally for the design, construction, and operation of Australia’s only network of Uptime Institute certified tier four facilities. NEXTDC is also the only data centre operator in the Southern Hemisphere to achieve tier four gold certification for operational sustainability.
The company has data centres in Brisbane, Canberra, Sydney, Melbourne, Perth, Adelaide, and the Sunshine Coast.