Hut 8 Approved $1.07 Billion Four-Year Credit Facility

Hut 8 announced that it has completed a $1.07 billion four-year senior secured revolving credit facility aimed at enhancing the liquidity of its parent company, providing funding support for projects such as AI data centers, and advancing its goal of establishing an investment-grade corporate credit rating. The financing utilizes non-dilutive debt financing, with an initial interest rate of SOFR plus 175 basis points, which will subsequently fluctuate between SOFR plus 150 to 200 basis points based on the company's total debt-to-market capitalization ratio. The company has the flexibility to draw and repay funds according to its needs without incurring prepayment penalties. Additionally, the financing includes a $1.07 billion letter of credit sub-limit for paying grid access deposits and related collateral requirements during project development, reducing cash collateral needs. This financing was led by JPMorgan as the lead arranger and administrative agent, with Citigroup, Goldman Sachs, and Morgan Stanley serving as joint lead arrangers, involving a total of 12 lending institutions.

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