NEXTDC (ASX:NXT) share price hits record high on debt update

The NEXTDC Ltd (ASX:NXT) share price has climbed to a record high on Monday morning. Here's why its shares are on the rise…

| More on:
nextdc share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The NEXTDC Ltd (ASX: NXT) share price is on the move on Monday following the release of an update.

At the time of writing, the data centre operator's shares are up almost 3% to a new record high of $13.10.

What did NEXTDC announce?

This morning NEXTDC provided the market with an update on its debt facilities.

According to the release, the company has entered into a new Syndicated Facility Agreement with the likes of Credit Suisse, HSBC, National Australia Bank Ltd (ASX: NAB) and Natixis to arrange and underwrite $1.5 billion in senior debt facilities.

These senior debt facilities will be split across three tranches, each with a tenor of five years. They comprise an $800 million term loan facility, a $400 million capital expenditure facility, and a $300 million revolving multi-currency credit facility. 

Management notes that the new facilities provide a significant improvement in NEXTDC's weighted average cost of debt and duration profile. They also come with materially improved financial covenants and flexibility.

NEXTDC intends to utilise the term loan facility to redeem all of its unsecured notes on issue at the next interest payment date of 9 December 2020.

The company's CEO and Managing Director, Craig Scroggie, commented: "We are very pleased and encouraged by the support from our existing and new lending partners to the NEXTDC growth story. The new debt facilities provide NEXTDC with greater funding firepower as we continue to execute on our development pipeline in the coming years to satisfy growing customer demand."

"We are grateful for the support provided by our fixed income investors to the Company through what was a critical phase of our growth. Our ability to achieve A$1.5 billion in Senior Debt Facilities is a testament to the maturity of the Company today," Mr Scroggie added.

Is an international expansion coming?

No commentary was given on why NEXTDC has a $300 million revolving multi-currency credit facility.

But considering its existing operations are entirely in Australia, this could potentially be a sign that the company has its eyes on an international expansion in the near future.

Should you invest $1,000 in Latitude Group Holdings Limited right now?

Before you buy Latitude Group Holdings Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Latitude Group Holdings Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was the ASX's fourth day of gains for the week today.

Read more »

a man raises his fists to the air in joyous celebration while learning some exciting good news via his computer screen in an office setting.
Share Gainers

Why Cedar Woods, Healius, NextDC, and Platinum shares are charging higher today

These shares are rising on Thursday. But why are investors buying them? Let's find out.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Share Gainers

These were the best-performing ASX 200 shares in April

These shares were in fine form in April. Let's see why they outperformed.

Read more »

Hiker man backpacker with hands up in the summer mountains with cloudy sky.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX made it three from three.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Cedar Woods, Orthocell, PEXA, and St Barbara shares are storming higher today

These shares are having a good session on hump day. But why?

Read more »