NextDC shares rise as it refinances $2.9 billion bank debt
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The news: Data centre operator NextDC has tied up a new $2.9 billion bank debt to refinance its existing debt facilities, sending its shares up.
The numbers: The new senior bank debt includes a five-year revolving facility for $1.5 billion, a seven-year revolving facility for $400 million and another seven-year revolving facility for $1 billion. The company said it has attained material pricing reductions, and extended weighted average loan maturities to six years from 2.2 years previously.
NextDC shares are up nearly 2% to $16.55 in early trading.
The context: NextDC said the terms of the new facilities provided significant benefits, including additional flexibility to fund longer term growth ambitions through both the bank and bond markets, and the refinance provides a more stable funding profile.
The financial close for the new debt facilities — arranged by a consortium of CBA, HSBC, NAB and RBC — is expected in December.
Earlier this year, NextDC raised $750 million via equity to support the acquisition of new data centre sites across Asia, and last month agreed to buy a new Sydney-based data centre site for $353 million.
The source: ASX announcement
