Core Scientific Plans $3.3 Billion Note Issuance to Fund Debt and Projects

Core Scientific, a Bitcoin mining company, has announced that its wholly-owned subsidiary intends to privately issue senior secured notes totaling $3.3 billion, maturing in 2031. According to Foresight News, the net proceeds from this issuance will be used to fund a debt service reserve account and will be allocated to the parent company, Core Scientific. The company plans to use the funds to fully repay its existing delayed draw term loans under a previous 364-day credit agreement. Additionally, Core Scientific will provide completion guarantees for data center construction projects located in Dalton, Georgia; Denton, Texas; Marble, North Carolina; and Muskogee, Oklahoma, ensuring timely completion in case of funding shortfalls. The notes will be fully and unconditionally guaranteed by several regional subsidiaries of Core Scientific.