Hut 8 Prices $3.25B Investment-Grade Bond For River Bend Data Center
First single-sponsor construction-stage IG bond, 6.192% coupon, 16.5-year amortization, 15-year Fluidstack lease, Google financial backstop
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Hut 8 Corp. priced $3.25 billion in 6.192% senior secured notes due 2042 through wholly-owned subsidiary Hut 8 DC LLC, with the offering closing on April 30, 2026.
J.P. Morgan led the bookrunner syndicate, with Goldman Sachs participating.
Proceeds finance the construction of 245 MW of critical IT capacity at the River Bend data center campus in West Feliciana Parish, Louisiana, and the related substation.
The transaction was announced on April 27, 2026, with first data hall commissioning scheduled for the second quarter of 2027.
Capital Structure And Amortization Schedule
The notes carry a fixed coupon of 6.192% with semi-annual interest payments beginning November 15, 2026.
Principal amortization begins May 15, 2028, with the notes fully amortizing to zero at the November 15, 2042 maturity. The 16.5-year tenor matches the 15-year base term of the underlying lease and the construction window.
The notes are non-recourse to Hut 8 Corp., secured by first-priority liens on substantially all assets of Hut 8 DC LLC and a pledge of equity interests in the issuer.
Use Of Proceeds
The $3.25 billion is allocated across the construction of a 245 MW data center and its related substation, along with funding for debt service reserves, fees, and offering expenses.
Approximately $184 million is returned to Hut 8 Corp. as reimbursement of prior equity contributions tied to earlier project development spending.
Anchor Lease And Credit Backstop
The debt is supported by cash flows from a 15-year triple-net lease with Fluidstack signed in December 2025, with a base contract value of $7.0 billion and a 3% annual rent escalator.
Total contract value reaches $17.7 billion if all three five-year renewal options are exercised. Expected average annual net operating income is approximately $454 million.
Google provides a financial backstop covering all lease payments, with novation rights inside the first six years and a springing Alphabet guarantee that activates if Google revenue falls below 50% of consolidated Alphabet revenue.
Fluidstack holds a Right of First Offer on up to an additional 1,000 MW at future River Bend expansion phases.
Credit Ratings And Project Execution
S&P Global Ratings assigned a preliminary BBB- rating with Positive Outlook. Fitch Ratings assigned an expected BBB- rating with Stable Outlook, with a forecast minimum debt service coverage ratio of 1.31x and average of 1.32x across the lease term.
Entergy Louisiana provides power under a 16-year service agreement with an initial 330 MW utility allocation. Vertiv supplies critical power and cooling infrastructure.
Jacobs Engineering Group leads design-build under a guaranteed maximum price contract.
The first data hall is scheduled for energization in the second quarter of 2027, with phased delivery of remaining halls through the balance of 2027.