Nextdc (ASX:NXT) launched an institutional offering of AU$1.1 billion in subordinated convertible notes due 2031, seeking to fund its Australian data-center development pipeline while strengthening liquidity, according to an Australian bourse filing on Wednesday after market hours.
The notes are expected to carry a 1.25% to 1.75% annual cash coupon, with an initial conversion price set roughly 33% to 38% above the reference share price, while a capped-call hedge could lift the effective conversion price to as much as 70% above the reference price, per the filing.
Settlement is expected around Sept. 17, with investors having the option to put the notes back to the company in September 2029, while pro forma liquidity is expected to increase to around AU$9.78 billion from AU$8.68 billion before transaction costs, the filing said.
The company will also undertake an about AU$330 million delta placement of existing shares to facilitate investor hedging, with no new shares issued or proceeds received, while the placement price of at least AU$12.40 per share will establish the reference share price, the filing added.