Core Scientific secured $600 million of senior secured credit facilities, split between a $100 million revolving credit line and a $500 million letter of credit facility.
The company said the new facilities are expected to free up about $300 million of restricted cash. That would materially increase available liquidity and capital flexibility.
The revolving facility carries a three-year maturity. Core Scientific said borrowings can be priced at adjusted term SOFR plus 1.75% or at an alternate base rate plus 0.75%, depending on the company’s election.
The letter of credit facility will be used to back specific project obligations under utility agreements and for other corporate purposes. Letters of credit under that facility will carry a 1.75% annual fee on outstanding amounts, plus a 0.125% annual fronting fee.
The financing is secured by a first-priority lien on substantially all assets of Core Scientific and its guarantor subsidiaries. The obligations are guaranteed by certain wholly owned domestic subsidiaries.
Core Scientific said Morgan Stanley Senior Funding acted as lead left arranger and joint bookrunner, while JPMorgan Chase Bank serves as administrative agent, collateral agent, joint lead arranger and joint bookrunner. Goldman Sachs and TD Securities are also joint lead arrangers and joint bookrunners.
The company said the facilities are intended to support general corporate purposes, working capital needs and project obligations. Following these announcements, the company's shares moved 4.48%, and are now trading at a price of $18.20. Check out the company's full 8-K submission here.
