What do data centre lenders require if the power supply contract is lost?
In the Helios credit agreement, the power supply and interconnection agreements are material project documents. The borrower cannot let the counterparty assign without lender consent, and must pass curtailment and disconnection notices to the lenders. Losing the power agreement is an event of default unless the borrower gets the tenant, CoreWeave, to agree within 15 days not to terminate the lease. A replacement power agreement must then take effect within the forbearance period, and no later than 30 days after the termination.
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What the filed contracts say
Contract
What the filed wording says
Galaxy Helios credit agreement
The power agreements are the electricity sales agreement and the interconnection agreements for delivering power to the data centre substation.
Galaxy Helios credit agreement
The borrower must pass the lenders any material notice from FERC, the Texas regulator or ERCOT, and any default, curtailment or disconnection notice under the power contract.
Galaxy Helios credit agreement
If the power agreement is lost, there is no default if CoreWeave agrees within 15 days to hold off terminating the lease and a replacement takes effect within the forbearance period and 30 days.
Galaxy Helios credit agreement
The borrower may not consent to the power supplier assigning the contract without the lenders’ consent.
The filed wording
“Power Agreement” means, collectively, (a) the Master Electric Energy Sales Agreement and (b) each Interconnection Agreement entered into by Galaxy Power and a Power Provider relating to the delivery of electric service to the Data Center Substation as of the Closing Date.
Galaxy Helios I credit agreement (Helios data centre, leased to CoreWeave), section 1.1, “Power Agreement” · Galaxy Digital 8-K/A, Exhibit 10.1
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.
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