Hut 8 Secures $3.25B at 6.192% for 245MW River Bend AI Data Center
Hut 8 raised $3.25 B in senior secured notes at 6.192% maturing November 2042 to fund its 245 MW River Bend AI data center under a 15-year triple-net lease with Fluidstack. The non-recourse, fully amortizing, BBB-rated debt returns $184 M to the parent for prior equity and eliminates refinancing risk.
1. Financing Structure
Hut 8 closed $3.25 B in senior secured notes carrying a 6.192% coupon maturing in November 2042, rated BBB- by S&P and Fitch. The fully amortizing, non-recourse structure is matched to project cash flows and was oversubscribed.
2. Project Scope and Lease Terms
Proceeds will fund construction of a 245 MW critical IT capacity AI data center at River Bend, Louisiana, under a 15-year triple-net lease with Fluidstack valued at $7 B and backed by a Google financial guarantee.
3. Balance Sheet Impact
The transaction returns $184 M to the parent for prior equity contributions, preserves parent-level equity by avoiding recourse debt, and eliminates refinancing risk through full amortization by 2042.
4. Development Timeline
Phase I utilizes 330 MW of Entergy Louisiana capacity, with construction underway and commercial operations expected in Q2 2027. The campus has potential for up to 1 GW of utility capacity for future AI expansion.