Core Scientific said it plans to raise $3.3 billion through senior secured notes due 2031, with the proceeds earmarked first for a debt service reserve account and then for a distribution to the parent company.
The company said it intends to use part of that cash to repay its outstanding delayed draw term loans under its 364-day credit facility, including accrued interest, fees and expenses. The notes will be guaranteed by five subsidiaries: Core Scientific Austin, Denton, Dalton, Marble and Muskogee.
The debt will be secured by first-priority liens on substantially all assets of the issuer and the subsidiary guarantors, plus all equity interests in the issuer held by Core Scientific Finance Holding and certain assets and rights of Core Scientific.
Core Scientific also said it will provide a completion guarantee tied to datacenter projects in Dalton, Georgia; Denton, Texas; Marble, North Carolina; and Muskogee, Oklahoma, committing to fund the issuer if proceeds and other available funds are not enough to finish those projects on time.
The offering follows the company’s continued push to shift more of its business toward high-density colocation. Core Scientific said it operates facilities in Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma and Texas, with three sites in Texas, two in Georgia and one each in the other states listed. The market has reacted to these announcements by moving the company's shares -7.39% to a price of $15.79. Check out the company's full 8-K submission here.
