TeraWulf Expands Revolving Credit Line 60% to About $400 Million
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Key Takeaways
- Total senior secured revolving credit commitments increased from $250 million to approximately $400 million.
- New uncommitted accordion feature allows for a potential increase of approximately $150 million in aggregate commitments.
TeraWulf (NASDAQ: WULF) has increased its senior secured revolving credit facility to approximately $400 million from $250 million and removed a cap on letters of credit, following plans to bolster financing for utility commitments tied to its data center expansion.
The amendment took effect October 23, according to a securities filing. Morgan Stanley Senior Funding serves as administrative and collateral agent. The agreement also allows TeraWulf to seek approximately $150 million in additional commitments through an uncommitted expansion option, potentially bringing the facility to about $550 million. That increase requires additional lender commitments and satisfaction of other conditions.
The financing follows an October 5 disclosure in which TeraWulf said it planned to enlarge the revolver and pursue additional senior secured debt to support letters of credit for long-term power-development partnerships with utilities. Letters of credit provide counterparties with bank-backed payment assurances.
Those obligations have already tied up substantial cash. TeraWulf disclosed in its second-quarter report that it posted $360.7 million in letters of credit in July for power-service and transmission-infrastructure obligations at its Muskie Data Campus in eastern Kentucky. Of that amount, $74 million was issued under the revolver. Another $286.7 million was issued under a separate facility backed by $295.3 million in cash collateral.
