On 29 June, the group announced to the ASX that it has secured a material contract from a leading corporation and also advised of a planned increase to its funding facilities
NEXTDC (NXT) has announced to the ASX that it has secured a material contract for additional capacity of 4 megawatt (MW) from a “leading corporation” to lift total contracted capacity 28% to 18.3MW. As part of the announcement, NXT has also highlighted that it has gained credit approval for an increase to its senior secured debt facility from $20m to $50m and will appoint a manager to raise $70m in unsecured notes. These facilities will be in addition to the existing $60m in unsecured notes raised in July 2014. It is likely the new notes will rank pari passu with the existing notes.
The additional funds will support continued capital expenditure as the group aims to lift capacity from 20.25MW to its target of 42.05MW. For perspective on the costs involved, $221m has been spent to date to deliver the current 20.25MW capacity. The figure below illustrates what has been built and what is planned to be built.
M1: Melbourne. S1: Sydney. P1: Perth. C1: Canberra. B1: Brisbane
Further details on the new unsecured notes are expected to be announced in late July.
Director - Credit Research, Industrials and Corporates. Will has over 15 years’ experience in credit and fixed income markets, including 6 in London, working at fund managers, banks and government treasury.