NextDC aims to raise more capital

Seeks to raise about $60 million

Datacentre provider, NextDC (ASX:NXT) entered a trading halt on August 20 in connection with potential capital raising.

It plans to commence trading on August 22 and has revealed in its 2013 financial results that it is seeking to raise about $60 million.

NextDC stated it was seeking financial flexibility to accelerate capital expenditure on existing facilities to meet customer demand.

For the 2013 financial year, revenue for the datacentre provider was $36.2 million, compared to $4.8 million in the previous year with $51.4 million in cash. EBITDA was $700,000.

At the end of the financial year, it managed secure a three year, $30 million corporate debt facility with ANZ Bank. In July, it sold securities held in real estate investment trust, Asia Pacific Data Centre Group (APDC) and received $28.1 million after transaction costs.

NextDC also undertook a capital recycling program through the sale and leaseback of its M1 Melbourne, S1 Sydney and P1 Perth datacentre property assets to APDC.

NextDC highlighted some of its specific sales milestones during the year included signing more than 120 customers and 240 service orders. It also entered into agreements with partners and customers including Australia Post, Pacnet, Optus and Dimension Data.

It has 68 channel partners on its books along with 27 telco partners, which contributed $7 million in annualised sales. Currently, it has more than 40 channel partners in progress, and more than 400 channel sales staff with a $50 million pipeline in its sights.

“The company has achieved many important milestones in development, sales and capital recycling during the year and is well placed to capitalise on its position as the only national provider of vendor and carrier neutral datacentres,” NextDC CEO, Craig Scroggie, said in a statement.

During the year it spent $82.5 million on the development of datacentres including the construction of S1 and P1. It launched its M1 Melbourne and C1 Canberra datacentres in July and August last year. Revenue from datacentre services totalled $9 million, up from $1.2 million on the previous year.