NEXTDC LTD's stock soared 5.00% during intraday trading on Wednesday, following the company's announcement of a AU$1 billion hybrid securities issuance.
The hybrid issuance provides NEXTDC with flexible funding options for its data center expansion plans and removes pressure for the company to raise equity in the short term. According to Jefferies, this gives the data-center operator "ample headroom" within its debt covenant limits and provides runway to fund approximately 250 megawatts of new data center build-out over the next two years.
Following the hybrid issuance, NEXTDC will have AU$5.2 billion in pro forma liquidity along with AU$278 million in cash. Jefferies maintained its buy rating on the stock, noting the company is well financed amid disruptions in credit markets.