Broken up into three tranches, each with a tenor of five years. The first is a A$800 million term loan facility, second is a A$400 million capital expenditure facility, and lastly a A$300 million revolving credit facility.
Authorised by the NEXTDC board of directors, the new senior debt facilities will give the company a better weighted average cost of debt and duration profile - it will provide improved financial covenants and flexibility.
“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,” said Craig Scroggie, CEO and managing director, NEXTDC.
“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.”
In addition, NEXTDC also has A$800 million in unsecured notes on issue, the company plans on using the term loan facility to redeem all of these unsecured notes at the next interest payment in December.
The company will have liquidity of close to A$1.6 billion, including cash of A$893 million as of 30 June 2020 and undrawn debt under the new senior debt facilities of approximately A$700 million after redeeming the unsecured notes.
Together, the Mandated Lead Arrangers, Underwriters and Bookrunner’s will arrange and manage the syndication of the senior debt facilities, due to close December 2020.
