Borrowing base
The amount of lending capacity supported by eligible assets or cash flows after applying advance rates, limits and deductions.
How it works
A borrowing base sets the maximum amount that can be borrowed by reference to eligible assets or cash flows. The lender applies advance rates and limits to the eligible value, and the result caps the loan. If the borrowing base falls below the debt, the borrower must repay or add collateral.
In GPU and data centre deals
In GPU finance the borrowing base may be built on contracted customer cash flows, the depreciated value of the GPUs, or both. Lenders exclude ineligible items, such as contracts with weak customers or GPUs not yet accepted, and apply concentration limits. The borrowing base is recalculated periodically, so a customer default or a fall in GPU values can trigger a mandatory prepayment.
What gets negotiated
- Which assets and contracts are eligible
- Advance rates and concentration limits
- How often the base is recalculated, and by whom
- Cure period and remedies for a shortfall
Why the distinction matters
Calculate availability alongside the total commitment and existing drawings. A borrowing-base deficiency can arise from lost eligibility without any new borrowing.
Read the structure
From contract eligibility to concentration limits, valuation and a funding shortfall.
GPU borrowing bases: what actually supports availability ↗For in-house counsel
Take it to the documents
The filed wording behind GPU and data centre financings, for either side of the table. Previews are open; the full text is free with InfraCompute Weekly.
- Financing clause libraryCash traps, coverage ratios, cures and step-in, from the filed deals.
- Contract libraryGPU contracts, leases, power, equity and JVs, quoted from filed contracts.
- Issues list builderBuild an issues list from the lender’s or the borrower’s side.
- The legal desk for in-house counselContract library, issues lists, checklists and English law notes.
Related terms
Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.
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