NEXTDC to issue high yield series 2 note

18 November 2015

NextDC Ltd announced it will be issuing senior unsecured notes shortly.  The company builds and operates data centres in Australia and New Zealand and is seeking to raise a minimum $70 million to fund the development of a new Brisbane data centre and for other general corporate purposes.

NextDC issued its series 1 notes in June 2014, taking in twice the $30 million it initially sought. The second series will have the same structure: the notes have an 8.00% coupon and June 2019 final maturity date; they are callable after 2.5 years (December 2016); and, every six months afterwards, with early redemption for tax events and change of control events. The first series of notes have a feature whereby if they are not redeemed at each six monthly call date, investors receive a bonus 0.5% per six months when they are finally redeemed. At this stage it is unknown as to whether the second series will have this feature.