12 October 2020
A$1.5 billion Senior Debt
NEXTDC Limited (ASX: NXT) ("NEXTDC" or "the Company") is pleased to advise that the Company has entered into a new Syndicated Facility Agreement with Credit Suisse AG, Sydney Branch, HSBC, National Australia Bank and Natixis, Singapore Branch, together the Mandated Lead Arrangers, Underwriters and Bookrunners ("MLAUBs") to arrange and underwrite A$1.5 billion in senior debt facilities ("Senior Debt Facilities").
The Senior Debt Facilities will be split across three tranches, each with a tenor of five years:
A$800 million - Term Loan Facility
A$400 million - Capital Expenditure Facility
A$300 million - Revolving Credit Facility (multi-currency)
The new Senior Debt Facilities provide a significant improvement in NEXTDC's weighted average cost of debt and duration profile, together with materially improved financial covenants and flexibility relative to the existing undrawn A$300 million senior debt facility that they are replacing.
NEXTDC also has A$800 million in Unsecured Notes on issue across Notes III and Notes IV. NEXTDC intends to utilise the Term Loan Facility to redeem all of the Unsecured Notes on issue at the next Interest Payment Date of 9 December 2020. NEXTDC will provide the necessary notice to the Notes Registrar, the Trustee, and the Noteholders in due course.
On a pro-forma basis, NEXTDC will have liquidity of approximately A$1.6 billion, including cash of A$893 million as at 30 June 2020 and undrawn debt under the new Senior Debt Facilities of approximately A$700 million after redemption of the Unsecured Notes.
NEXTDC CEO and Managing Director, Craig Scroggie said:
"We are very pleased and encouraged by the support from our existing and new lending partners to the NEXTDC growth story. The new debt facilities provide NEXTDC with greater funding firepower as we continue to execute on our development pipeline in the coming years to satisfy growing customer demand."
Mr Scroggie noted:
"We are grateful for the support provided by our fixed income investors to the Company through what was a critical phase of our growth. Our ability to achieve A$1.5 billion in Senior Debt Facilities is a testament to the maturity of the Company today."
Together, the MLAUBs will arrange and manage the syndication of the Senior Debt Facilities, with financial close expected to be achieved in December 2020.
Cadence Advisory acted as financial adviser and Herbert Smith Freehills as legal adviser to NEXTDC in relation to the establishment of the Senior Debt Facilities.
This announcement is authorised by the Board of Directors.
For more information
Vice President Strategy and Investor Relations
T: +61 2 8072 4976
NEXTDC Investor Centre: www.nextdc.com/our-company/investor-centre
NEXTDC is an ASX100-listed technology company and Asia's most innovative Data Centre-as-a-Service provider. We are building the infrastructure platform for the digital economy, delivering the critical power, security and connectivity for global cloud computing providers, enterprise and government.
NEXTDC is recognised globally for the design, construction and operation of Australia's only network of Uptime Institute certified Tier IV facilities, and the only data centre operator in the Southern Hemisphere to achieve Tier IV Gold certification for Operational Sustainability. NEXTDC has a strong focus on sustainability and operational excellence through renewable energy sources and delivering world-class operational efficiency. Our data centres have been engineered to deliver exceptional levels of efficiency and the industry's lowest Total Cost of Operation through NABERS 5-star energy efficiency.
NEXTDC's corporate operations have been certified carbon neutral under the Australian Government's Carbon Neutral Initiative, in line with National Carbon Offset Standard (NCOS) for Organisations.
Our Cloud Centre partner ecosystem is Australia's most dynamic digital marketplace, comprising more than 590 carriers, cloud providers and IT service providers, enabling local and international customers to source and connect with cloud platforms, service providers and vendors to build complex hybrid cloud networks and scale their critical IT infrastructure services.
NEXTDC is where the cloud lives®.
To learn more, visit www.nextdc.com
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NEXTDC Limited published this content on 12 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 October 2020 22:34:01 UTC