Core Scientific, Inc./tx 8-K

What Happened

• Core Scientific, Inc. (CORZ) announced on March 4, 2026 that it entered into a Credit Agreement with Morgan Stanley Senior Funding, Inc. as administrative and collateral agent for a $500.0 million senior secured delayed‑draw Term Loan Facility. The Company drew the full $500.0 million on March 5, 2026. The facility matures 364 days after the closing date and bears interest at term SOFR (0% floor) plus a 2.50% margin. The agreement includes an accordion that could increase commitments by up to an additional $500.0 million.

Key Details

• Facility amount: $500.0 million initial principal; accordion up to +$500.0 million.
• Drawn: Full $500.0 million was borrowed on March 5, 2026.
• Maturity and cost: 364‑day maturity; interest = term SOFR (floor 0%) + 2.50% per annum.
• Fees and costs: up to $7.5 million in commitment and exit fees (if fully drawn); delayed syndication fees may apply starting 106 days after closing.
• Use of proceeds: general corporate purposes tied to development of data center assets (equipment, energy/commodity deposits, real property costs, pre‑development), and to pay fees/expenses related to the facility; expressly excludes repayment of indebtedness and dividends.
• Security and guarantees: obligations guaranteed by certain wholly owned domestic subsidiaries and secured by a first‑priority lien on substantially all assets of the Company and guarantors.
• Prepayment/mandatory repayment: customary optional prepayment with no premium; mandatory prepayments of 100% of net cash proceeds from certain asset sales, new debt, insurance/condemnation awards, equity raises, and certain development/construction payments.

Why It Matters

• Liquidity for growth: The $500M immediate borrow provides near‑term cash to fund Core Scientific’s data center development and related costs, supporting operational expansion plans.
• Short maturity and refinancing risk: The loan is short‑term (364 days), so investors should note the company may need to refinance, repay, or otherwise address the facility within about a year.
• Secured, senior position and covenants: The debt is senior and secured, with guarantees and customary covenants that limit certain corporate actions (additional debt, liens, dividends, acquisitions). That senior secured status affects recoveries and priority relative to equity holders.
• Cost implications: Interest tied to SOFR + 2.50% plus fees (including up to $7.5M and potential syndication fees) represent the near‑term financing cost to the company.