NextDC preparing to launch subordinated notes offer next week

NextDC preparing to launch subordinated notes offer next week

NextDC Strengthens Debt Facilities to Support Expansion and AI Infrastructure Development

NEXTDC Limited (ASX: NXT) has announced a significant enhancement to its debt capacity, securing new senior debt facilities of A$2.2 billion, which increases its total available debt to A$5.1 billion as of August 2025. This move is designed to fund capital expenditures linked to recent customer contract wins and ongoing data centre developments, including its $2 billion AI Factory and Technology Campus in Fishermans Bend, Melbourne. The facilities, underwritten by a syndicate of major banks, mature on 3 December 2030, providing long-term financial flexibility.

The company's FY25 financial results highlight robust growth, with total revenue reaching A$427.2 million—a 6% increase from FY24—and net revenue rising 14% to A$350.2 million. Contracted utilisation surged by 42% year-on-year to 244.8MW, driven by demand for AI and cloud infrastructure. NEXTDC also reported a record capital expenditure of A$1.7 billion in FY25, reflecting its commitment to expanding capacity across Australia and internationally.

Looking ahead, NEXTDC plans to leverage its strengthened balance sheet—total assets of A$5.7 billion and net assets of A$4.151 billion—to advance projects such as the S4 and S7 data centres in Western Sydney, which will be developed via a joint venture targeting over 850MW of IT capacity. The company has also expanded its connectivity offerings, including 100Gbps ports for AI-driven workloads and partnerships with NVIDIA to certify AI-ready infrastructure.

While no specific mention of a subordinated notes offer appears in recent disclosures, NEXTDC's strategic focus on debt diversification and liquidity— evidenced by its A$5.5 billion pro forma liquidity—positions it to pursue additional financing options as needed to meet surging demand for AI and cloud infrastructure. Investors will likely monitor future announcements for details on capital raises or new debt instruments.

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