SharonAI Holdings enters US$356M GPU facility in two tranches
Facility A begins at 7.25 per cent and Facility B stays at 9.95 per cent under a Sept. 28 agreement backed by subsidiary assets.
Julian Okafor
A US$356 million GPU financing signed on Sept. 28 splits borrowing into two tranches and puts a limited guarantee on the parent company. SharonAI Holdings Inc. NASDAQSHAZ, the AI cloud operator planning capacity across the Asia-Pacific region, said on Oct. 1 that two Australian subsidiaries could borrow up to US$150 million under Facility A and US$206 million under Facility B.
SharonAI shares fell 8.7 per cent to US$49.85 on Nasdaq at 4 p.m. EDT on Oct. 1, according to NASDAQSHAZ. Trading volume was 2.23 million shares against a 1.49 million average, according to NASDAQSHAZ at 4 p.m. EDT on Oct. 1. The Sept. 30 previous close was US$54.60, according to NASDAQSHAZ at 4 p.m. EDT on Oct. 1.
The Oct. 1 filing puts Facility A's initial fixed cash-pay rate at 7.25 per cent annually, rising as high as 9.95 per cent on certain dates. Facility B bears 9.95 per cent throughout, with both tranches paying interest monthly. Each matures 42 months after first use, with principal due then in one sum unless mandatory prepayments apply.
Sharon's Oct. 1 release says the loans are intended to fund infrastructure for customer contracts and names Goldman Sachs and select private credit funds among investors. It calls the financing the first in an expected series toward more than 68,000 GPUs by mid-2027. The release says institutional debt and equity capital secured in the preceding 10 months will exceed US$2.6 billion once this transaction closes.
Subsidiary Borrowers Pledge Project Assets
"This facility demonstrates how we expect to access debt markets to fund our GPU deployments, leveraging our book of quality customer offtake now standing at a TCV of over US$8.8bn," SharonAI chief executive James Manning said in the Oct. 1 release.
Manning's US$8.8 billion figure is total customer offtake contract value, not proceeds from the new facility. The Oct. 1 release gives no expected project return or schedule of customer receipts against the pledged cash flows. The 8-K summary says proceeds can finance or refinance servers, CPUs, GPUs and related equipment at contracted data centre facilities for a customer contract; Item 1.01 does not name that customer.
Item 1.01 names SAI AU No. 1 Pty Ltd and SAI AU No. 3 Pty Ltd as the borrowers, with their immediate holding companies guaranteeing the debt. It describes SharonAI's own guarantee as limited and releasable. Following repayment of Facility A, the financing becomes non-recourse to the parent, apart from management and intellectual-property arrangements involving another subsidiary.
Security covers substantially all assets of the borrowing and guaranteeing subsidiaries, including project bank accounts and material contracts. The borrowers must maintain a gross loan-to-value ratio tested quarterly, subject to limited equity cure rights. Facility B can also carry a make-whole premium on certain prepayments or acceleration during the 18 months after utilization, according to the 8-K.
An earlier Sharon agreement announced on Aug. 4 shows the interval between contracting and planned revenue. The five-year US$373 million cloud-service agreement with an unnamed global AI platform was expected to begin generating revenue in the first quarter of 2027. Its initial deployment was planned for 2,048 GPUs, with more capacity dependent on customer requirements and the contract's terms.
On Aug. 4, Sharon said customers had contracted 120 megawatts of its 132-megawatt AI Factory capacity. Its target then was 64,000 GPUs by mid-2027. The Oct. 1 target was more than 68,000 by mid-2027. The Oct. 1 release does not identify the August agreement as the customer contract financed under the Sept. 28 facility.
Hut 8's Revolver Sits At The Parent
Hut 8 Corp. NASDAQHUT TSEHUT, the power and digital infrastructure developer, closed a US$1.07 billion four-year secured revolver on Sept. 28. Its initial drawn margin was SOFR plus 175 basis points. Hut 8's borrower is the corporate parent, while SharonAI's new loans are taken by subsidiaries with a limited parent guarantee under the filed terms.
Mugglehead's earlier account of Hut 8's Sept. 28 revolver explained that its bank commitment was borrowing capacity, rather than cash already drawn. SharonAI's Oct. 1 release does not give an amount drawn on its own new facility, while the filed terms set a repayment clock from first utilization.
Read more: Hut 8 adds US$1.07B secured credit line for AI campuses
The first quarter of 2027 is the next dated customer milestone from Sharon's Aug. 4 agreement, when it expects revenue to begin. Its separate deployment target is more than 68,000 GPUs by mid-2027, with the financed customer unnamed in the 8-K summary.
