Lending against long-lead equipment

How much will lenders advance against turbines or transformers before they are installed?

Fermi has two loans against equipment bought ahead of need. The turbine loan from MUFG advances 65% against delivered turbines and 55% against turbines still on order. Each figure applies to the lower of purchase cost and appraised orderly liquidation value, and for turbines on order the payments still owed to Siemens come off first. When equipment arrives and an independent auditor confirms it, the borrower can draw a one-time top-up. The high voltage equipment loan from Keystone advances 80% of the purchase price, with 20% equity from the borrower.

Randeep Bubbra | Lawyer | Making the next generation of infrastructure financeable · Firm profile · Updated 29 October 2026

What the filed contracts say

Contract	What the filed wording says
Fermi turbine warehouse loan	The advance rate is 65% for delivered equipment and 55% for equipment still on order.
Fermi turbine warehouse loan	It applies to the lower of purchase cost and appraised value; for turbines on order, the payments still due to the manufacturer are deducted.
Fermi turbine warehouse loan	Appraised value for the Siemens equipment is its orderly liquidation value.
Fermi turbine warehouse loan	Once title passes and an independent auditor confirms delivery, the borrower may draw a one-time top-up.
Fermi turbine warehouse loan	The loan matures on 10 August 2027.
Fermi high voltage equipment loan	For high voltage equipment the advance rate is 80% of the purchase price, with the borrower funding the other 20% in cash.

The filed wording

“Debt Sizing Percentage (Delivered Equipment)” means 65%. “Debt Sizing Percentage (Undelivered Siemens Firebirds Equipment)” means 55%. “Debt Sizing Percentage (Undelivered Siemens F-Class Equipment)” means 55%

Fermi turbine warehouse equipment supply loan (Siemens and GE gas turbines), MUFG as agent, Exhibit A, “Debt Sizing Percentage” · Fermi 8-K, Exhibit 10.1

Title, storage and supplier consents Selling equipment and value tests Funding the GPU purchase Put it on an issues list All contract clauses

On the deal pages

Financings by the parties to these contracts

The latest debt raised by the companies that signed them, with the terms and the sources on each deal page.

Financing	Borrower or issuer	Date	Amount
Fermi 5.00% convertible senior notes due 2031	Fermi Inc.	15 July 2026	US$375m

Method

Each extract is quoted from the contract as filed with the SEC, checked against the filed text when it was added; “…” marks words left out. Filers redact commercial terms, so a [***] or [*] is the filer's, not ours. The summaries describe the wording, not how a court would read it, and each contract's defined terms and other clauses can change the effect. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.