The Brief:
NEXTDC raises $1.1bn in convertible notes to expand its data centre pipeline as AI-driven demand grows.
Mallesons is on the ticket again, having advised more issuers of publicly marketed convertible bonds than any other Aussie firm.
NEXTDC has locked in $1.1bn to keep building.
Mallesons advised the ASX 50-listed data centre operator on the convertible notes offering, backing the build and growth of its Australian data centre pipeline.
NEXTDC’s client base spans cloud computing providers, enterprises and government.
The raise
The notes are subordinated and due in September 2031. They were priced after a bookbuild to eligible institutional investors and a delta placement.
The notes convert into fully paid NEXTDC ordinary shares unless NEXTDC chooses to settle a conversion in cash. NEXTDC also entered into capped call transactions, designed to reduce the economic hit of any dilution on conversion.
NEXTDC is still investing in new data centre capacity to keep pace with customer demand, including demand driven by AI.
Settlement occurred on 17 September 2026.
Who’s acting
Go-to NEXTDC adviser Mallesons acted on the raise, led by M&A partner Paul Schroder.
He was backed by banking and finance partners Andrew Maynes and Phil Harvey, special counsel Mitchell Fairbairn and solicitors Bella Kidman, Amy Ling and Georgia Weeden. Derivatives partner Max Allan ran the capped call work, assisted by solicitor Layton Hubble.
It’s the latest in a busy run for Mallesons and NEXTDC. The firm has also worked on the company’s $1.7bn hybrid securities offer, $750m subordinated notes offer, $1.5bn equity capital raising and new $2.3bn senior debt commitments.
When it comes to convertibles, no one in Australia has done more. Mallesons has advised more issuers of publicly marketed convertible bonds than any other Aussie law firm.