New Era Secures $290M Multi-Tranche Loan; Macquarie Commits $10M Equity
New Era Energy & Digital secured a $290 million multi-tranche loan facility including $20 million, $30 million, $40 million and a $200 million delayed-draw tranche maturing in three years. Macquarie will purchase $5 million of shares at $5.00 each and warrants for another $5 million at a $5.00 exercise price.
1. Loan Facility Structure and Terms
New Era through its subsidiary Texas Critical Data Centers LLC established a senior secured term loan credit facility of up to $290 million with Macquarie’s Commodities and Global Markets division. The facility is split into a $20 million Term Loan A-1, $30 million A-2, $40 million A-3 and a $200 million delayed-draw tranche, all maturing three years from closing.
2. Equity Purchase and Warrants
As part of the financing, Macquarie will acquire $5 million of common stock at a 20% premium to the five-day volume-weighted average price, equating to $5.00 per share. The agreement also includes warrants to purchase up to $5 million of common shares at a 20% premium, subject to a $4.30 floor, with an initial $5.00 exercise price proportional to the first $50 million drawn.
3. Use of Proceeds
Proceeds from the term loan will fund acquisition, improvement and equipping of properties for the 438-acre Texas Critical Data Center flagship project near Odessa, Texas, as well as general corporate uses and potential repayment of existing indebtedness. TCDC is master-planned to scale beyond one gigawatt capacity in multiple development phases.
4. Securities Fraud Lawsuit Opportunity
Separately, shareholders who report losses in the company’s securities are pursuing appointment as lead plaintiff in a proposed securities fraud lawsuit, potentially introducing litigation risk and governance considerations for the company.