NEXTDC Ltd's stock surged 5.42% during intraday trading on Tuesday, following the company's announcement of a major capital raising initiative.
The data center operator launched a AU$1 billion wholesale offering of subordinated hybrid securities, which is fully supported by a binding commitment from the Canadian investment group La Caisse. The securities feature a non-call period of five years and a maturity of 100 years, providing the company with flexible, long-term capital to fund its growth requirements.
This substantial capital injection is earmarked to support the continued development of NEXTDC's data center assets. The hybrid securities will carry an initial coupon rate of 7.50% for the first five years, stepping up to 9.20% thereafter, with the offering expected to close around April 23.