Data Centre Expansion
NEXTDC Secures A$8.7 Billion Debt Facilities for Major Data Centre Expansion
Anonymous
Key Points
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The A$2.3 billion upsized facilities comprise four instruments: Facility H (Term, A$700 million, maturing Sep 2031), Facility I (Revolving, A$950 million, Sep 2031), Facility J (Term, A$450 million, Sep 2033) and Facility K (Revolving, A$200 million, Sep 2033), taking NEXTDC’s total senior debt facilities to A$8.7 billion.
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The new facilities are governed under NEXTDC’s existing Common Terms Deed Poll, with margins broadly consistent with existing debt of similar tenor.
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Proceeds will primarily fund capital expenditure tied to recent customer contract wins, ongoing data centre developments, and general corporate purposes.
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The upsizing builds on a series of recent capital-raising initiatives, including a A$1.5 billion Entitlement Offer, a A$1.7 billion Hybrid Securities Offer and a A$750 million Wholesale Notes Offer, diversifying funding sources.
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Over the past 12 months, NEXTDC shares have risen about 21%, outperforming the ASX 200's 2% gain over the same period.
NEXTDC has locked in A$2.3 billion in new senior debt facilities, lifting its total available senior debt to A$8.7 billion to fund a major data centre expansion push. The Nightly reported the move comes amid what the company calls "unprecedented" demand for data centre capacity across Australia.
Financial close is expected in mid-July 2026, subject to customary conditions. The deal was backed by a broad group of domestic and international banks, with pricing broadly in line with existing debt of similar length. Stocks Down Under noted total capacity now sits at A$8.8 billion when all facilities are counted.
Four New Facilities Make Up the A$2.3B Package
The A$2.3 billion package is split into four separate instruments. Facility H is a A$700 million term loan maturing in September 2031. Facility I is a A$950 million revolving credit line, also maturing in September 2031. The two larger facilities make up the bulk of the new funding.
The remaining two are smaller. Facility J is a A$450 million term loan maturing in September 2033. Facility K is a A$200 million revolving line with the same maturity date. All four sit under NEXTDC's existing Common Terms Deed Poll, keeping the structure consistent with prior debt. Yahoo Finance noted this represents an increase of A$500 million from commitments announced in May.
Proceeds Tied Directly to Contract Wins and New Builds
NEXTDC says the money will go toward capital spending tied to recent customer contract wins. It will also fund ongoing data centre developments and general corporate costs. The company has not named the specific customers involved, but the scale of spending signals large, long-term commitments from clients.
Kalkine reported that NEXTDC is focused on building high-specification, sustainable data centres to capture growing digital infrastructure demand. The strategy is designed to attract enterprise and hyperscale customers who need reliable, energy-efficient facilities.
A$8.7B War Chest Built Through Multiple Capital Raises
The debt upsizing is the latest in a string of large capital raises. NEXTDC has also completed a A$1.5 billion Entitlement Offer, a A$1.7 billion Hybrid Securities Offer, and a A$750 million Wholesale Notes Offer. Together, these deals diversify the company's funding well beyond traditional bank debt.
Kalkine noted total senior debt stood at A$6.4 billion before this deal. The new facilities add A$2.3 billion, pushing the figure to A$8.7 billion. NEXTDC shares have risen about 21% over the past 12 months, far ahead of the ASX 200's 2% gain in the same period.
Data Centre Boom Drives Investor Confidence in NEXTDC
Demand for data centre space has surged globally, driven by cloud computing and artificial intelligence workloads. NEXTDC is positioning itself as a key provider in the Asia-Pacific region. The scale of this debt package signals that management expects large capital spending needs for years ahead.
Yahoo Finance reported that the facilities are intended to support NEXTDC's expansion plans. Analysts have highlighted the company's strengthened liquidity as a key advantage. With A$8.7 billion in senior debt capacity now available, NEXTDC has the financial firepower to move quickly on new projects as demand grows.
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