NextDC is raising A$1.1bn, about $796M, through convertible notes to fund the continued expansion of its Australian data centres. It is the third time the company has raised capital in a little over four months.
The terms were reported by Reuters on Wednesday. The notes mature on 17 September 2031, with holders able to put them back to the company in September 2029.
The conversion price will be set at a premium of 32.5% to 37.5% over a reference share price, with that price floored at A$12.40.
NextDC will also enter capped call transactions, with an indicative cap around 70% above the reference price, to reduce potential dilution if the notes are converted into shares.
The structure says something about how NextDC sees its share price. By issuing convertible notes instead of new shares, the company avoids selling equity at today’s price.
