Following on from NEXTDC’s announcement in the middle of November regarding a debt capital raising, the company has announced demand was stronger than expected and oversubscriptions have been accepted, to the tune of an additional $30 million. The total amount of funds raised via the Notes II offer comes to $100 million and it was raised via professional and sophisticated investors, as defined under the Corporations Act, and was available in minimum parcel size of $50K.
Notes II will be direct, senior, unsubordinated, unsecured obligations of NEXTDC, subject to a “negative pledge”*. Noteholders will rank behind providers of senior secured debt facilities and any other secured creditors. The notes will be unrated and have a face value of $1000.
Readers will recall how the earlier article mentioned this latest series will have the same features as the notes issued in 2014 but it was uncertain as to how the early redemption feature would be accommodated. As it turns out, when the pricing was done, the coupon rate was set at 7%, lower than the 8% of the series 1 notes. And if the Notes are redeemed on the first call date in December 2016, noteholders will receive a bonus 1.50% extra on the face value. Should the Notes be redeemed on the second call date, a further 0.50% will be paid. If the company does not redeem the Notes on the next 3 call dates the bonus interest is upped to 0.75% per six month period until the final maturity date.
*A negative pledge means that you will not secure an asset to someone else without the agreement of the people you agree to give the negative pledge to.