New Era Energy & Digital secures $290M term loan and unveils stock offering
New Era Energy & Digital has launched an underwritten public offering of common stock to repay its senior secured convertible promissory note with SharonAI and for general corporate purposes, granting underwriters a 30-day option for up to 15% additional shares. The company also closed a $290 million senior secured term loan facility—including $20 million A-1, $30 million A-2, $40 million A-3 and a $200 million delayed-draw tranche—maturing in three years to fund its Texas data center project and potential debt repayment.
1. Underwritten Public Offering Launch
New Era Energy & Digital has commenced an underwritten public offering of its common stock under an effective Form S-3 shelf registration. The offering includes a 30-day option for underwriters to purchase up to an additional 15% of the shares at the public offering price, less discounts and commissions.
2. Use of Proceeds for Debt Repayment and Corporate Needs
Net proceeds from the stock offering are earmarked to fully repay the company’s senior secured convertible promissory note payable to SharonAI, with any remaining funds allocated to general corporate purposes. This move aims to strengthen the balance sheet by eliminating a secured debt obligation.
3. $290 Million Senior Secured Term Loan Facility
The company closed a $290 million multi-tranche term loan credit facility with Macquarie Group. The facility comprises a $20 million Term Loan A-1, $30 million Term Loan A-2, $40 million Term Loan A-3 and a $200 million delayed draw tranche, all maturing three years from closing.
4. Funding Texas Critical Data Center Project
Proceeds from the term loan will support the development, improvement and equipping of the Texas Critical Data Center project in the Permian Basin, and may be used for potential repayment of existing debt. The financing package also includes a $5 million equity purchase and $5 million in warrants at a 20% premium to the five-day VWAP.