Loan & DebtJun 4, 2026, 10:36 AM
Hut 8 Subsidiary to Offer $4.25B Senior Secured Notes for Data Center
AI Summary
Hut 8 Corp.'s indirect wholly-owned subsidiary, Beacon Point DC LLC, announced its intention to offer $4.25 billion in senior secured notes due 2042. The proceeds will primarily finance the development and construction of a 352-megawatt data center project in Nueces County, Texas, which will be leased to a high-investment-grade tenant. The offering also aims to fund debt service reserves and cover associated fees and expenses.
Key Highlights
- Hut 8 subsidiary Beacon Point DC to offer $4.25 billion senior secured notes due 2042.
- Proceeds will finance a 352 MW data center project in Nueces County, Texas.
- The data center will be leased to a high-investment-grade tenant (AA- or higher).
- Projected total revenue over the project life is $9.788 billion.
- Projected total levered free cash flow is $2.860 billion.
- The Debt Service Coverage Ratio (DSCR) is sculpted to 1.34x.
- Initial leverage is 7.95x and Interest Coverage Ratio (ICR) is 2.01x.
Price Impact
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