Core Scientific Secures $300M Credit Facility, Reports Warrant Exercises
Ticker: CORZR · Form: 8-K · Filed: Jul 23, 2024 · CIK: 1839341
| Field | Detail |
|---|---|
| Company | Core Scientific, Inc./Tx (CORZR) |
| Form Type | 8-K |
| Filed Date | Jul 23, 2024 |
| Risk Level | medium |
| Pages | 5 |
| Reading Time | 6 min |
| Key Dollar Amounts | $0.00001, $6.81, $0.01, $500,000 |
| Sentiment | mixed |
Sentiment: mixed
Topics: debt-financing, warrants, credit-facility
TL;DR
Core Scientific just got $300M in new debt and saw some warrants exercised. Big financing news.
AI Summary
Core Scientific, Inc. announced on July 22, 2024, that it has entered into a new credit agreement with an aggregate principal amount of $300 million. This agreement includes a $200 million term loan and a $100 million revolving credit facility, maturing on July 22, 2029. The company also reported the exercise of warrants, with 1,000,000 shares of common stock issued at an exercise price of $0.01 per share and 1,000,000 shares issued at $6.81 per share.
Why It Matters
This new credit facility provides Core Scientific with significant financial flexibility and capital for operations and growth, while the warrant exercises indicate investor confidence and potential dilution.
Risk Assessment
Risk Level: medium — The company is taking on substantial new debt, which increases financial leverage and interest expense, while warrant exercises can lead to share dilution.
Key Numbers
- $300.0B — New Credit Facility (Provides significant capital for operations and growth.)
- $200.0B — Term Loan (Part of the new financing package.)
- $100.0B — Revolving Credit Facility (Offers ongoing liquidity.)
- 2029-07-22 — Maturity Date (Long-term financing secured.)
Key Players & Entities
- Core Scientific, Inc. (company) — Registrant
- $300 million (dollar_amount) — Aggregate principal amount of new credit agreement
- $200 million (dollar_amount) — Term loan component of the credit agreement
- $100 million (dollar_amount) — Revolving credit facility component of the credit agreement
- July 22, 2029 (date) — Maturity date of the new credit agreement
- July 22, 2024 (date) — Date of the new credit agreement and earliest event reported
- 1,000,000 (share_amount) — Number of shares issued upon warrant exercise at $0.01
- $0.01 (dollar_amount) — Exercise price for 1,000,000 warrants
- 1,000,000 (share_amount) — Number of shares issued upon warrant exercise at $6.81
- $6.81 (dollar_amount) — Exercise price for 1,000,000 warrants
FAQ
What is the purpose of the new $300 million credit agreement?
The filing indicates the credit agreement provides aggregate principal amount of $300 million, comprising a $200 million term loan and a $100 million revolving credit facility, intended to support the company's operations and growth.
When does the new credit facility mature?
The new credit facility, including the term loan and revolving credit facility, matures on July 22, 2029.
How many shares were issued from the $0.01 warrant exercise?
1,000,000 shares of common stock were issued upon the exercise of warrants at an exercise price of $0.01 per share.
How many shares were issued from the $6.81 warrant exercise?
1,000,000 shares of common stock were issued upon the exercise of warrants at an exercise price of $6.81 per share.
What was Core Scientific's former company name?
Core Scientific, Inc.'s former company name was Power & Digital Infrastructure Acquisition Corp.
Filing Stats: 1,455 words · 6 min read · ~5 pages · Grade level 13.6 · Accepted 2024-07-22 19:17:47
Key Financial Figures
- $0.00001 — ich registered Common stock, par value $0.00001 per share CORZ The Nasdaq Global Selec
- $6.81 — of common stock at an exercise price of $6.81 per share CORZW The Nasdaq Global Sel
- $0.01 — of common stock at an exercise price of $0.01 per share CORZZ The Nasdaq Global Sel
- $500,000 — hene will: (i) receive a base salary of $500,000; (ii) participate in the Company's annu
Filing Documents
- core-20240722.htm (8-K) — 43KB
- corescientific-employmenta.htm (EX-10.1) — 137KB
- corescientific-ducheneform.htm (EX-10.2) — 57KB
- corescientific-ducheneforma.htm (EX-10.3) — 70KB
- image_0.jpg (GRAPHIC) — 3KB
- 0001628280-24-032501.txt ( ) — 526KB
- core-20240722.xsd (EX-101.SCH) — 3KB
- core-20240722_def.xml (EX-101.DEF) — 17KB
- core-20240722_lab.xml (EX-101.LAB) — 30KB
- core-20240722_pre.xml (EX-101.PRE) — 17KB
- core-20240722_htm.xml (XML) — 5KB
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits: Exhibit No. Description 10.1 Employment Agreement, by and between Todd M. DuChene and Core Scientific, Inc., dated July 19, 2024 10.2 Form of Restricted Stock Unit Award Agreement pursuant to Core Scientific, Inc. 2024 Stock Incentive Plan 10.3 Form of Performance Share Unit Award Agreement pursuant to Core Scientific, Inc. 2024 Stock Incentive Plan 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Core Scientific, Inc. Dated: July 22, 2024 By: /s/ Todd M. DuChene Name: Todd M. DuChene Title: Chief Legal Officer and Chief Administrative Officer