The Brief:
NEXTDC raises $1.1bn in convertible notes to expand its data centre pipeline as AI-driven demand grows.
Mallesons advises NEXTDC, while Allens and alliance partner Linklaters act for the sole lead manager.
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. Allens and alliance partner Linklaters advised the sole lead manager, with Linklaters acting as international counsel and Allens covering the Australian side.
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 for NEXTDC 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.
On the other side, Allens and alliance partner Linklaters advised the sole lead manager, UBS Securities. Allens’ team was made up of corporate partner Julian Donnan, banking partners James Darcy and Rod Aldus, managing associate George Bishop, senior associate Michael Burrell and overseas practitioner Tess Bryson.
Linklaters’ capital markets team was led by partner Jonathan Horan, with counsel Grace Wee, managing associate Daryl Bryan Chee and associate Edward Lee. Its structured finance and derivatives team comprised partners Victor Wan and Stephen Song, counsel Chris Wang and associate Samuel Tsan.
It’s the latest in a busy run for Mallesons, Allens and NEXTDC. Mallesons has 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. Meanwhile, Allens’ Julian Donnan said their mandate follows on from Allens’ previous roles acting for the lead managers on NEXTDC’s $1bn equity raise in April, as well as for La Caisse on its $1.7bn hybrid securities commitment to the company around the same time.
When it comes to convertibles, no one in Australia has done more than Mallesons, with the top-tier firm advising more issuers of publicly marketed convertible bonds than any other Aussie law firm.