Announcement

NEXTDC Limited (ASX: NXT) today announced the launch of its issue of NEXTDC Notes IV (ISIN: To be Confirmed). The offer is intended to raise $250 million, with an ability to take-over subscriptions. Net proceeds will be used for general business and financing purposes, including investment in the development of new data centre sites and the core supporting infrastructure at these sites, as well as to assist financing potential acquisitions currently under consideration.

These securities are structured as direct, senior unsecured notes and interest payments are nondiscretionary, fixed (or floating) rate and paid semi-annually (or quarterly) in arrears. The interest is guided to be set at a margin of [3.75 - 3.85%] p.a. above the 90-Day BBSW for the floating rate tranche and at [6.00 - 6.10%] for the fixed-rate tranche. The notes rank equally among themselves (but behind the new, $300 million undrawn syndicated senior secured bank facilities) and at least equally with all other unsecured and unsubordinated obligations of the issuer (NEXTDC Notes III). Investors are protected by financial covenants, event of default mechanisms, dividend restrictions and a negative pledge.

NEXTDC has the right but not the obligation to redeem the notes prior to maturity on the first call date (9th of June 2020) or on any interest payment date thereafter. On first call date, the call is at 101.5% of par value but declines ratably thereafter to par at maturity. The holder may request early redemption of the notes on the occurrence of a Change of Control event. The legal final maturity of the notes is the 9th of June 2022. 

Summary of the Transaction:

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