Core Scientific Strengthens Balance Sheet; Repays $267M In Debt, Reducing Interest Rate From ~12.5% To 3%

Author: Benzinga Newsdesk | August 20, 2024 04:11pm

• Repays $267 million in debt, reducing interest rate from approximately 12.5% to 3%
• Removes restrictive covenants associated with certain notes
• Increases cash on hand to fund site acquisitions for HPC hosting growth

Core Scientific, Inc. (NASDAQ:CORZ) ("Core Scientific" or the "Company"), a leader in digital infrastructure for bitcoin mining and high-performance computing, today announced it has repaid a total of $267 million in debt with proceeds from its offering of convertible senior notes first announced on August 13, 2024, which closed on August 19, 2024.

The Company repaid $150 million in secured notes, $61 million in an exit facility and $56 million in miner equipment loans, in addition to interest and other fees. Interest rates on the prior borrowings were as high as 12.5% as compared to 3% for the new convertible notes. Net proceeds from the offering after all payments (including commissions and estimated offering expenses) totaled $172.8 million, significantly increasing cash on hand available for site acquisition and other growth initiatives.

Posted In: CORZ