NextDC raises $50m in capital for facilities expansion

Funds to finance M1 and C1 fitouts

Melbourne-based data centre operator, NextDC (ASX: NXT), has raised $50 million in additional capital to finance fitouts and extra costs at its Melbourne M1 and Canberra C1 sites.

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The $50 million will be used in three ways:

  • Approximately $32 million to finance the new data hall and costs for the M1 facility
  • Approximately $15 million for fitout, security deposits and costs at the C1 facility
  • $3 million for offer costs and additional working capital

In a statement released to the ASX, NextDC chief executive, Bevan Slattery, said the company had raised the capital through shares issued at $1.75 each, comprised of an institutional placement of $30 million and a conditional placement of $20 million made to investor clients of Moelis Australia Advisory and RBS Morgans Corporate.

“An extraordinary general meeting is expected to be held on or around 15 September, 2011 to approve the issuance of shares under the conditional placement,” Slattery said.

“NextDC will provide eligible shareholders with a notice of meeting.”

Slattery said he was delighted that the capital-raising process had been delivered in “record time” in a challenging stock market environment.

“Post this capital raising, NextDC will have over $150 million equity and approximately $95 million cash at bank, making it a very well-funded company to deliver its vision,” he said.

According to Slattery, the company was now on track to enable the “Cloud revolution” by delivering a network of independent data centres in Sydney, Melbourne, Brisbane, Canberra and Perth.

NextDC entered a trading halt on Friday July 29, 2011 when it announced the funds raising, and is expected to resume trading when the ASX market opens today.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow Computerworld Australia on Twitter: @ComputerworldAU

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