Cipher Digital Inc. plans to raise $810 million through a junk-bond sale to finance construction of a data center project in West Texas. Bloomberg and The Next Web report that the financing is expected to cover remaining costs for Cipher’s Stingray Facility, a 100-megawatt computing campus located in Andrews County, near or in the town of Andrews. Under the arrangement described in the reports, Amazon.com Inc. is expected to lease the data center for 15 years, linking the facility to Amazon’s infrastructure needs.
The proposed bond offering is marketed at a yield of about 6.25%, according to The Next Web, which attributes the figures to Bloomberg. Details such as the final bond terms and pricing are not fully specified in the excerpts provided. Both sources characterize the transaction as a way for Cipher to obtain capital through high-yield debt to complete the buildout of the Amazon-leased facility.
