Galaxy Digital Prices $3.507 Billion in Senior Secured Notes

Galaxy Digital Inc. announced on Monday that its indirect wholly owned subsidiary, Galaxy Helios Data Centers II LLC, has priced a $3.507 billion private offering of senior secured notes due 2031. The notes will carry a 9.875% annual interest rate.

The proceeds from the offering are intended to finance the development and construction of two buildings containing eight data halls with a combined capacity of 400 megawatts (MW) of utility capacity and 260 MW of critical IT capacity. The project is located on a 260-acre property in Dickens County, Texas. Funds will also be used for debt service reserves.

The notes will be fully and unconditionally guaranteed by Galaxy Helios II LLC. They will be secured by first-priority liens on substantially all assets of the Issuer and the Guarantor, as well as all equity interests in the Issuer held by its direct parent company.

The offering is subject to market and other conditions. The notes have not been registered under the Securities Act and will be offered only to qualified institutional buyers and certain non-U.S. persons, in accordance with applicable exemptions from registration.