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Cipher Subsidiary Prices $810 Million of Secured Notes to Fund Stingray Data Center

Secured notes with a reported AWS pre-lease underpin lender confidence in the project's ability to finish construction.

Overview

  • Cipher disclosed on Monday that Stingray Compute LLC priced $810.0 million of 6.000% senior secured notes due 2031 at 99.750% of par and expects the private placement to close on or about June 15, 2026 subject to customary conditions.
  • Cipher says net proceeds will finance remaining construction costs of the 70-megawatt Stingray high-performance computing facility, reimburse about $61.5 million of prior equity contributions, and fund debt service reserves.
  • The notes are fully and unconditionally guaranteed by Cipher Stingray, secured by first-priority liens on substantially all issuer and guarantor assets, and backed by a customary completion guarantee from Cipher to cover any shortfall.
  • Market coverage reported that the Stingray project is fully pre-leased to Amazon Web Services, a tenancy that market participants cited as key to the financing case and that coincided with an immediate positive move in Cipher’s share price.
  • The offering is a private placement to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S, so closing remains subject to market and other customary conditions and carries the execution risks outlined in Cipher’s SEC filings.