TeraWulf (WULF) announced in a press release that its wholly owned subsidiary, WULF Compute LLC, intends to offer $3.2 billion in aggregate principal amount of senior secured notes due 2030.
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The company expects to use net proceeds to fund part of its planned expansion at the Lake Mariner campus in Barker, New York, enhancing its capacity for high-density computing workloads.
From the press release:
“The Notes will be fully and unconditionally guaranteed by WULF Compute’s subsidiaries, La Lupa Data LLC, Akela Data Holdings LLC and Akela Data LLC (collectively, the “Guarantors”). The Notes and related guarantees will be secured by first-priority liens on (i) substantially all assets of WULF Compute and the Guarantors, other than certain excluded property, (ii) all equity interests of WULF Compute held by TeraWulf Brookings LLC, the direct parent company of WULF Compute, (iii) a designated lockbox account of Fluidstack USA I Inc. and (iv) prior to the completion of the Data Center Expansion, a pledge by Google LLC of warrants to purchase common stock of TeraWulf.”
TeraWulf will provide customary completion guarantees for the Lake Mariner expansion, funding WULF Compute as needed to ensure timely delivery of the data center facilities.
Morgan Stanley is acting as sole bookrunner. The offering remains subject to market and other conditions, with no assurance as to timing or terms.
In August, TeraWulf upsized a convertible notes offering to $850 million shortly after signing a 10 year lease agreement with Fluidstack and Google.
Read More: Rosenblatt raises TeraWulf price target to $14.50, cites undervalued HPC pipeline
At time of publication, WULF is down 1.2% during pre-market hours.
