New Era Energy & Digital’s subsidiary PowerCo entered into a Letter of Credit Reimbursement Agreement with Macquarie Bank Limited to secure obligations under a Power Purchase Agreement with Luminant. The bank issued a $116.0 million standby letter of credit in favor of Luminant, secured by cash collateral maintained at not less than 102% of the undrawn face amount. To fund part of the required collateral, PowerCo drew down $60.0 million from existing term loans and issued warrants to purchase 413,055 shares of common stock with an exercise price of approximately $7.26 to the lender. Additionally, the company announced it is pursuing direct leases with hyperscale tenants for its Texas Critical Data Center project rather than forming a joint venture. The company operates in the energy and digital infrastructure sector.
