NEXTDC Secures A$750 Million Wholesale Notes, Lifting Liquidity to A$6.6 Billion

Wholesale Notes Offer Strengthens Capital Structure

ASX-listed data centre operator NEXTDC Limited (ASX:NXT) has successfully priced and allocated a A$750 million tranche of subordinated wholesale notes, marking a key milestone in its ongoing capital raising efforts. The notes carry a four-year tenor and a floating coupon of 3-month BBSW plus 350 basis points, reflecting investor appetite for NEXTDC’s growth story within the Australian data centre sector.

This issuance forms a pivotal part of NEXTDC’s broader A$2.2 billion capital plan, complementing the recently announced entitlement offer and a substantial hybrid securities raise. Together, these initiatives have boosted NEXTDC’s pro forma liquidity to an estimated A$6.6 billion as of 30 June 2026, positioning the company to aggressively pursue its infrastructure expansion and capacity growth targets.

Positioning Within the Capital Stack

The wholesale notes are unsecured and subordinated, ranking junior to NEXTDC’s existing senior debt facilities but senior to its hybrid securities and ordinary shares. This nuanced positioning offers investors a middle ground in the risk-return spectrum, with limited financial covenants and coupon deferral only triggered by senior debt default events. The notes also include customary early redemption rights for tax events, cleanup calls, and change of control scenarios.

Settlement is anticipated on 30 April 2026, subject to standard conditions. NEXTDC’s CEO Craig Scroggie highlighted the strong backing from institutional and high net worth investors as a clear endorsement of the company’s strategy and the long-term trajectory of the Australian data centre market.

Capital Plan Momentum and Market Confidence

This wholesale notes offer follows NEXTDC’s recent surge in contracted utilisation and capacity expansion, which saw a 60% increase to 667MW as of March 2026, underpinning a significant forward order book and contracted EBITDA growth. The company’s expanded capital plan includes substantial investments in Western Sydney data centre developments and a raised FY26 capex guidance to between A$2.7 billion and A$3.0 billion, with FY27 expected to reach around A$5 billion. These commitments were detailed in NEXTDC’s entitlement offer updates and hybrid securities announcements earlier this month, reflecting a concerted push to capture demand in the cloud infrastructure space. This context helps explain the Wholesale Notes Offer’s strong reception among investors, who appear confident in NEXTDC’s ability to execute its growth strategy amid a competitive and evolving market.

Supporting advisers on the transaction included Barrenjoey as sole structuring adviser and joint lead manager, alongside Commonwealth Bank of Australia, National Australia Bank, and Westpac Banking Corporation. Cadence Advisory and Mallesons provided independent financial and legal advice respectively.