Core Scientific Adds $600M Credit Facilities as AI Buildout Accelerates
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Key Takeaways
- Core Scientific finalized a $600 million credit package consisting of a $100 million revolver and a $500 million letter of credit facility.
- The agreement is expected to unlock roughly $300 million in restricted cash previously tied up in utility obligations.
- Borrowing is contingent on maintaining a $3 billion market capitalization and $150 million in quarterly liquidity.
- The facilities are secured by a first-priority lien on the company's and its subsidiaries' assets.
Core Scientific (NASDAQ: CORZ) has secured $600 million of senior secured credit facilities, adding liquidity and credit support as the former bitcoin mining specialist spends heavily to transform its power portfolio into artificial-intelligence data centers.
The financing consists of a $100 million revolving credit line and a $500 million letter-of-credit facility, according to an Aug. 27 regulatory filing. Neither facility had been used when the agreement closed on Aug. 25.
The distinction means only one-sixth of the headline amount is available as revolving borrowing capacity. The larger portion will primarily support obligations under utility agreements and other projects rather than provide Core Scientific with cash upfront, the company said in its announcement.
JPMorgan Chase Bank NA is acting as administrative and collateral agent. The facilities run for three years, with Core Scientific able to elect a fourth-year maturity. Revolver borrowings carry interest at adjusted Term SOFR plus 1.75 percentage points, or an alternate base rate plus 0.75 percentage point. Based on the one-month CME Term SOFR rate of 3.68814% on Aug. 25—the applicable two-business-day lookback date—a one-month SOFR borrowing would currently carry an effective annual interest rate of about 5.44%. Three- and six-month borrowings would cost approximately 5.52% and 5.63%, respectively, before other charges.
