NextDC to raise $1.1B via convertible notes
- NextDC is launching an $1.1 billion convertible notes offering ahead of the market open.
- The deal offers a 1.25% to 1.75% cash coupon and a 32.5% to 37.5% conversion premium.
- Proceeds will fund data centre projects in Australia and international expansion.
Data centre operator NextDC (ASX:NXT) aims to raise $1.1 billion through a convertible debt deal before trading opens on Sept. 10.
The capital raise comes as the company manages development costs across major projects in Melbourne, Sydney, and Kuala Lumpur.
“The convertible structure funds the next phase of our development pipeline at a lower cash coupon than senior debt, and the capped call transactions effectively raise the conversion price and therefore reduce the economic cost of dilution that would otherwise occur,” said NextDC CEO Craig Scroggie.
The debt offering features a cash coupon between 1.25% and 1.75% with conversion options set at a minimum price of $12.40.
The notes will list on the Vienna Stock Exchange's specialist debt platform rather than the local market.
Following the announcement, the NextDC share price was unchanged at $12.79.
The company plans to invest up to $5.75 billion to complete its current pipeline of data infrastructure projects.
Executive management noted that regulatory risks and specific customer design requirements are creating cost uncertainty for future site developments.
