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TeraWulf Inc. (NASDAQ:WULF), a $5.25 billion market cap company that has seen its stock surge nearly 400% over the last six months, announced Thursday that its wholly owned indirect subsidiary, WULF Compute LLC, has completed a private offering of $3.2 billion in 7.750% senior secured notes due 2030. According to InvestingPro data, the company currently operates with a moderate level of debt and maintains a ’Fair’ overall financial health score. The notes were issued at par and sold to qualified institutional buyers under Rule 144A, according to a statement based on a Securities and Exchange Commission filing.
Net proceeds from the offering are intended to finance part of the company’s data center expansion at the Lake Mariner campus in Barker, New York.
The notes, which mature on October 15, 2030, carry an annual interest rate of 7.750%, payable semiannually on April 15 and October 15, starting April 15, 2026. Principal payments will be made on a semi-annual basis according to schedules in the indenture, with no amortization required for any data center building until its completion. The indenture also allows for adjustments to required amortization in the event of partial redemptions or repurchases.
WULF Compute may redeem the notes, in whole or in part, at any time after October 15, 2027, at redemption prices specified in the indenture. Before that date, the notes can be redeemed at 100% of principal plus a make-whole premium and accrued interest. The company may also redeem up to 40% of the aggregate principal amount with proceeds from certain equity offerings prior to October 15, 2027.
The indenture includes covenants that limit WULF Compute and its guarantors from incurring additional debt, paying dividends, making certain investments, creating liens, selling assets, engaging in affiliate transactions, or merging without meeting specified conditions. In the event of a change of control, WULF Compute is required to offer to repurchase the notes at 101% of principal, plus accrued interest.
TeraWulf has provided a completion guarantee for the data center expansion, agreeing to fund any shortfall to ensure timely completion if proceeds from the notes and available funds are insufficient. With a debt-to-equity ratio of 3.03 and significant market momentum, the company’s financial commitment reflects its aggressive growth strategy. Discover more detailed metrics and expert analysis through InvestingPro’s comprehensive coverage of over 1,400 US stocks.
This information is based on a press release statement included in a recent SEC filing.
In other recent news, TeraWulf Inc. announced that its subsidiary, WULF Compute LLC, has priced a substantial $3.2 billion offering of 7.750% senior secured notes due in 2030. These notes will be sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The proceeds from this offering are intended to finance the expansion of WULF Compute’s data center at the Lake Mariner campus in Barker, New York. Citizens has responded to this development by raising its price target on TeraWulf Inc. from $13.00 to $18.00, maintaining a Market Outperform rating on the company’s stock. The debt offering, described as having a "relatively attractive" interest rate, plays a significant role in this revised price target. TeraWulf has also updated its risk factors related to the proposed offering, which were made available in a regulatory filing. The transaction is expected to close on October 23, 2025, subject to market and other conditions.
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