Core Scientific has secured $600 million of committed senior secured credit facilities designed to increase financial flexibility as the digital infrastructure company expands its high-density colocation business. The financing consists of a $100 million revolving credit facility and a $500 million letter of credit facility.
Core Scientific expects the facilities to release approximately $300 million of restricted cash.
Borrowings under the revolver can be used for working capital and general corporate purposes, while the letter of credit facility can support utility agreements and other project obligations.
The revolver carries a three-year maturity with interest of adjusted term SOFR plus 1.75%, or an alternate base rate plus 0.75%.
Morgan Stanley Senior Funding acted as Lead Left Arranger and Joint Bookrunner.
JPMorgan serves as Administrative Agent and Collateral Agent and is also a Joint Lead Arranger and Joint Bookrunner alongside Goldman Sachs and TD Securities. Commitments are expected to be allocated equally among the four institutions.
Core Scientific is repurposing parts of its cryptocurrency mining infrastructure for AI-related high-density colocation workloads.
KEY QUOTE:
“The facilities are expected to release approximately $300 million of restricted cash, meaningfully improving our capital efficiency and financial flexibility as we pursue opportunities in a dynamic and rapidly evolving industry.”
Jim Nygaard, Chief Financial Officer Of Core Scientific
