Herbert Smith Freehills advises NEXTDC Limited on its A$120 million fully underwritten equity raising

Herbert Smith Freehills is delighted to have advised NEXTDC Limited (NEXTDC) on its A$120 million fully underwritten equity raising consisting of a A$50 million placement to institutional investors at A$2.55 per share (Placement) and a 1 for 6.23 accelerated non-renounceable pro-rata entitlement offer (ANREO) at A$2.25 per share, announced to the ASX on 23 November 2015 (Offer).

The proceeds from the Offer, together with NEXTDC’s current cash reserves, undrawn secured debt facility and ongoing operating cashflow, is expected to provide NEXTDC with adequate funds to complete the initial investment in new data centre facilities planned in Brisbane and Melbourne and further large customer opportunities.

The Herbert Smith Freehills capital markets team was led by partners Philippa Stone and Philip Podzebenko, with support from solicitors Hayden Guthrie and Tom Hambrett.

Ms Stone said, “It was a pleasure to assist NEXTDC on this important transaction and we look forward to continuing to work with the dedicated management team at the company.”

The Offer is being underwritten by Macquarie Capital (Australia) Limited (Underwriter). The Underwriter is being advised by Gilbert + Tobin.

Herbert Smith Freehills’ capital markets team has also recently acted for:

• The Commonwealth Bank of Australia on its A$5 billion PAITREO entitlement offer;
• The Joint Lead Managers on Westpac’s A$3.5 billion PAITREO entitlement offer;
• AGL Energy Limited on its A$1.2 billion PAITREO entitlement offer;
• Arrium Limited on its A$754 million PAITREO entitlement offer and placement;
• The Lead Manager on Syrah Limited’s A$211 million entitlement offer and placement;