NEXTDC (ASX:NXT), Australia's largest, locally owned and operated data centre provider, has announced a new $2.9bn debt facility aimed at supporting its ongoing expansion efforts and strengthening its financial position. The debt facility, formalised on 4 November 2024, consolidates NEXTDC’s debt under a common terms platform, which will enhance financial flexibility as the company pursues longer-term growth objectives.
The new financing is structured in three tranches: a 5-year revolving facility of $1.5bn maturing in December 2029, a 7-year term loan of $400m, and an additional 7-year revolving facility of $1bn maturing in December 2031. This structure has extended NEXTDC’s weighted average loan maturity from 2.2 years to six years, thereby significantly reducing near-term repayment pressures and providing a stable funding profile.
The debt refinancing introduces substantial pricing reductions for NEXTDC, aligning the company’s financing costs more closely with its long-term capital needs. With the recent capital raising in September 2024, NEXTDC’s liquidity position has improved to a pro forma $3.4bn.
Shares are trading 2.28% higher at $16.63.
