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