Hut 8 (NASDAQ: HUT) closed a $4.25 billion offering of 6.129% senior secured notes due 2042 on Tuesday through its wholly owned subsidiary, Beacon Point DC LLC.
The proceeds will fund development of a 352-megawatt AI data center on a 521-acre site in Nueces County, Texas
The deal is Hut 8’s second investment-grade construction bond and is non-recourse to the parent company. Moody’s rated the notes Baa2, one notch above the BBB− that S&P Global Ratings and Fitch assigned to Hut 8’s River Bend financing in April. The notes priced at T+165 basis points, 20 basis points inside the River Bend spread.
The fully amortizing notes begin amortization payments on May 30, 2030, and mature on November 30, 2042. J.P. Morgan acted as lead bookrunner, with Goldman Sachs as a bookrunner.