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NEXTDC looks to raise $150m for second Sydney datacentre

Chris Player | Sept. 6, 2016
Existing facility nearing capacity following new customer contract

NEXTDC CEO, Craig Scroggie
NEXTDC CEO, Craig Scroggie

Datacentre operator, NEXTDC (ASX: NXT), is looking to raise an additional $150 million for the construction of a second datacentre in Sydney.

The company has signed a new agreement with an existing "major international customer" which has taken capacity in its S1 Sydney facility to 82 per cent from 71 per cent at June 30.

The new contract is with the same customer with which the company announced an initial contract on December 11, 2014 and exhausts the customer's rights of first refusal relating to the S1 facility.

The contract is for an additional 1.5MW of capacity and the company is looking to add a further 30MW with the construction of a second facility in Sydney.

The company said that given its ongoing costs for the construction of second datacentres in Brisbane and Melbourne, it intends to raise additional capital before commencing construction of a second Sydney facility.

The company will release a new allotment of shares to "institutional investors" to raise $50 million and a separate entitlement offer to existing shareholders to raise a further $100 million.

The allotment of shares to institutional investors will be priced at $4.06, while existing shareholders will be able to purchase new shares at $3.74.

NEXTDC said it plans to invest between $140 million to $150 million in the development of S2 across FY17 and FY18, of which $60 million to $100 million is expected to be spent in FY17.

Source: ARN 


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