Macquarie Tech shares gain on increased debt refinancing
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More news: Shares in Macquarie Technology Group advanced in morning trade after the data centre, cloud and telecom company increased its debt refinancing to $450 million to support its ongoing data centre expansion.
Macquarie Tech shares rose 1.5% to $83.72 by 11:05am AEDT, having added more than 33% in the last 12 months.
RBC Capital Markets analyst Garry Sherriff called the announcement "positive", with RBC forecasting a $700 million total capital expenditure for the group until FY27.
Macquarie Tech hikes debt capacity to $450m for data centres
The news: Macquarie Technology Group has increased its debt refinancing by $260 million to support its ongoing data centre expansion.
The numbers: Under the new syndicated facility agreement, the group has access to a five-year secured revolving loan facility of around $450 million, representing an increased of $260 million to its previous facility.
Macquarie Tech said that with cash and cash equivalents of $118 million at 30 September, the group has sufficient liquidity to complete the build of its IC3 Super West Phase data centre in Sydney, with excess capacity to fund future growth.
The context: Macquarie Tech said that the new facility has been secured on "highly competitive key commercial terms" due to "strong appetite from domestic and international lending institutions".
The data centre, cloud and telecom company noted that the refinancing is subject to the satisfaction of customary conditions precedent and is expected to achieve financial close before the end of this calendar year.
What they said: "Following the acquisition of the Macquarie Park Data Centre Campus and the commencement of the IC3 Super West construction, we have marked another milestone with this successful debt refinance process," Macquarie Tech chief executive and co-founder David Tudehope said.
"The new facility will provide the capacity and flexibility to enable us to further invest and expand our data centre business."
The source: ASX announcement
