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Data centre expansion on the cards for NEXTDC

Data centre expansion on the cards for NEXTDC

NEXTDC has revealed ambitions to build additional data centre developments in Sydney, Melbourne and Perth using funds raised from a multimillion-dollar offer.

Firms: Herbert Smith Freehills (NEXTDC Limited); Gilbert+Tobin (Citigroup Global Markets Australia Pty Limited)

Deal: NEXTDC Limited (NEXTDC) announced a $297 million fully underwritten institutional placement and non-underwritten share purchase plan to the ASX.

Value: A$297 million

Area: Corporate, finance

Key players: HSF lead partner Phillipa Stone (pictured) advised NEXTDC on the offer. Assisting her on the deal was special counsel Rob Finlay and solicitors Michael Burrell, Elizabeth Cameron and Curtis Vella.

Singapore partner Siddhartha Sivaramakrishnan and senior associate Jin Kong advised NEXTDC in relation to the US securities law aspects of the offer.

Significance:

The NEXTDC institutional placement comprises a general placement to institutional investors worth A$147 million and a cornerstone placement to UniSuper valued at A$150 million.

The offer, announced by NEXTDC this month, has been underwritten by Citigroup Global Markets Australia Pty Limited. NEXTDC intends to use the proceeds of the offer to find three new commercial property sites for future data centres in Sydney, Melbourne and Perth.

A statement from HSF said that due to strong demand, the final placement value was increased by A$16 million and priced at A$6.81 per share (placement price). This was a 5.6 percent premium to the underwritten floor price of A$6.43 per share.

UniSuper has taken up its cornerstone placement at a 2.5 per cent premium to the placement price, HSF added.

On behalf of the HSF legal team, lead partner Phillipa Stone said she was delighted to have advised NEXTDC on the offer deal.

“We are delighted to have again advised NEXTDC on this successful transaction, having previously advised the company on its A$150 million ANREO entitlement offer and placement in September 2016 and its A$120 million ANREO entitlement offer and placement in November 2015,” Ms Stone said.

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