#USA #New York #Data Centers #secured notes #Galaxy Digital

Galaxy Digital Inc. Issues $3.507 Billion in Senior Secured Notes

In a significant development, Galaxy Digital Inc. (NASDAQ: GLXY), a prominent name in the realm of digital assets and data center infrastructure, has announced the pricing of a substantial private offering. The company is set to issue $3.507 billion worth of 9.875% senior secured notes due by 2031. This offering, managed by the company’s wholly owned subsidiary Galaxy Helios Data Centers II LLC, is poised to close by July 28, 2026, contingent upon market conditions and other factors.

The funds generated from this offering are earmarked for the advancement of two major data center facilities situated on a sprawling 260-acre property in Dickens County, Texas. Collectively, these facilities will house eight data halls, equipped with an extensive combined utility capacity of 400 megawatts (MW) and 260 MW designated for critical IT needs. This project underlines Galaxy Digital’s commitment to bolstering its operational capacity in response to the surging demand in digital infrastructure, particularly for AI and high-performance computing workloads.

The newly issued notes will accrue interest at a rate of 9.875% per annum, with payments scheduled to be made semi-annually in cash starting February 1, 2027. The maturity date for these notes is set for August 1, 2031. They will follow a unique amortization plan, amortizing at a rate of 4.00% annually based on the original principal amount. Amortization payments will also be made semi-annually, with the first payment occurring at least ten months post-project completion.

Significantly, these notes will be fully and unconditionally guaranteed by Galaxy Helios II LLC, which is a direct subsidiary of the issuer. The guarantees will represent senior secured obligations for both the issuer and the guarantor, secured by first-priority liens on a majority of their assets, with certain exclusions. This structural leverage solidifies the notes as a robust financial tool for Galaxy to enhance its standing in the data center sector.

It’s essential to note that the offering is subject to market conditions, and there is no guarantee regarding its finalization or the terms associated with it. The notes themselves have not been registered under the Securities Act or the securities laws of any other jurisdiction. Therefore, they will only be available to investors who meet the requirements of qualified institutional buyers under Rule 144A of the Securities Act, as well as to non-U.S. persons via Regulation S.

About Galaxy Digital Inc.: Headquartered in New York City with global reach, Galaxy Digital Inc. stands at the forefront of the digital assets industry, providing an array of services including trading, advisory, asset management, and tokenization. The company also operates substantial data centers that facilitate cutting-edge AI and HPC workloads, establishing its position among North America's top players in the data center development space. With its recent initiatives, Galaxy Digital is charting a progressive path in the digital asset landscape, aimed at accelerating advancements in finance and technology regulations that underpin these operations.

As with any forward-looking statements, the company recognizes the inherent risks and uncertainties associated with market conditions, potential closing conditions, and evolving business dynamics, which could affect the projected outcomes significantly. The initiative reflects Galaxy’s proactive approach in adapting to the burgeoning world of digital technology and infrastructure demands.

In conclusion, this offering marks a pivotal milestone for Galaxy Digital as it enhances its infrastructure and service capabilities, positioning itself for future growth amid an ever-advancing technological landscape.