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← New Era Energy & Digital
Thu, Oct 8, 2026

New Era posts $116 million Macquarie letter of credit for TCDC power contract

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Key points

  • On October 7, 2026, TCDC PowerCo LLC and Texas Critical Data Centers LLC entered a Letter of Credit Reimbursement Agreement with Macquarie Bank Limited.
  • Macquarie issued a $116.0 million standby letter of credit in favor of Luminant ET Services Company LLC to secure PowerCo's obligations under the power purchase agreement.
  • Drawings must be reimbursed at 12% per annum; TCDC guarantees PowerCo, and both are jointly liable for any amount not covered by the cash collateral. Fees: 1.00% fronting fee and 2.00% per annum letter of credit fee.
  • Cash collateral must be kept at no less than 102% of the undrawn amount (about $118.3 million at issuance): $60.0 million came from Term Loan A-2 and A-3 under the existing Macquarie term loan, the balance of about $58.3 million from cash on hand.
  • In connection with the $60.0 million draw, New Era issued Macquarie Equipment Capital Inc. warrants over 413,055 common shares at an exercise price of approximately $7.26.
  • The company expects to refinance the outstanding term loan borrowings in the near future, and is now pursuing leases directly with hyperscale tenants for TCDC rather than a joint venture with a data center developer.