Tools / What's market
InfraCompute Tools · What's market · 21 positions
What is market, point by point.
For each point lawyers negotiate in GPU loans, customer contracts and data centre securitisations: what the filed deals show, where each side usually opens, and the wording behind it. Every card can be cited and keeps its address.
GPU loans
Cash trap level in GPU loans
Where do lenders set the DSCR cash trap in a GPU-backed loan?
1.10x in three filed facilities, 1.15x in one
GPU loansWhen a GPU loan cash trap turns into prepayment
How long can a cash trap run before trapped cash must prepay the loan?
Six consecutive months, or four quarterly tests
GPU loansMinimum DSCR covenant in GPU loans
What minimum DSCR do GPU lenders set as an event of default?
1.05x on contract cash flow, or 1.15x to 1.40x on operating income
GPU loansWhat goes into the DSCR in GPU loans
Is the DSCR calculated on contract cash flow or on operating income?
Contract cash flow less listed costs, or three months of operating income
GPU loansAdvance rate in GPU loans
What percentage of GPU cost will lenders advance?
90% to 95% of cost, lower before revenue starts
GPU loansSizing DSCR in GPU loans
What projected coverage do lenders size a GPU loan to?
1.20x to 1.30x projected DSCR to maturity
GPU loansContract value ratio and customer breach triggers
Do GPU lenders test the value of the remaining customer contract?
2.40x contract value in one facility; MSA breach triggers in three
GPU loansEquity cure limits in GPU loans
How many times can a sponsor cure a covenant breach with equity?
Unlimited at first, then six in total or three in any four months
Customer contracts
Customer direct agreement in GPU financings
When must the customer sign a direct agreement with the lenders, and what will it agree to?
Before the first draw, by closing, or only as negotiated
Customer contractsCustomer step-in to the supplier's financing
Can the customer keep paying the supplier's financing if the supplier fails?
One filed example: Microsoft's option under the IREN statement of work
Customer contractsHyperscaler lease backstop (recognition agreement)
What does a hyperscaler backstop of a neocloud lease actually commit to?
90 days to find a tenant, then assume or reject
Customer contractsData centre access and step-in letters for GPU lenders
When must the colocation provider sign access and step-in arrangements for GPU lenders?
Within 120 days on an efforts basis, or per site at closing
GPU security
GPU serial number and location reporting
How soon must a borrower report which GPUs were financed and where they are?
Within 60 days of each borrowing; an invoice is enough
GPU securityGPU spares requirement
Do GPU lenders require spare servers, and how is it sized?
A percentage of contracted servers, rising as warranties run off
GPU securityGPU useful life in loan documents
What useful life do GPU loan documents assume?
Six years, straight line, in both filed examples
GPU securityRemarketing and RVG when a customer rejects GPUs
What happens to the loan if the customer validly rejects a tranche of GPUs?
A short sale or redeployment window, backed by the parent
GPU securityCasualty event threshold for GPUs
How much damage to the GPUs triggers mandatory prepayment?
'All or a portion' against 'all or a material portion'
GPU securitySecurity package when GPUs sit in several countries
What security documents does a multi-country GPU facility need?
One local security document for each country where GPUs sit
Data centre ABS
Cash trap level in data centre ABS
Where is the cash trap set in data centre securitisations?
1.30x to 1.35x on a three-month average, tested by class in one trust
Data centre ABSRapid amortisation trigger in data centre ABS
At what DSCR does a data centre securitisation switch to rapid amortisation?
1.20x for the class A notes
Data centre ABSHow a data centre ABS cash trap ends
How long must coverage recover before trapped cash is released?
Two consecutive months above the level, three in one trust
Method
Built from the filed credit agreements, indentures and customer contracts in the clause library, and rebuilt whenever the library changes. 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.
