Core Scientific Inc. (NASDAQ: CORZ) announced that its subsidiary Core Scientific Finance I LLC intends to offer $3.3 billion in senior secured notes due 2031, subject to market conditions.

The company plans to use proceeds to fund a debt service reserve account and make a distribution to Core Scientific. Core Scientific will use a portion of these funds to repay outstanding delayed draw term loans under its 364-day credit facility, including accrued interest and associated fees.

The notes will be guaranteed by five Core Scientific subsidiaries: Austin LLC, Denton LLC, Dalton LLC, Marble LLC and Muskogee LLC. The notes will be secured by first-priority liens on substantially all assets of the issuer and guarantor subsidiaries, equity interests of the issuer, and certain Core Scientific assets.

Core Scientific will provide a completion guarantee for data center development and construction projects in Dalton, Georgia; Denton, Texas; Marble, North Carolina; and Muskogee, Oklahoma. The company will fund the issuer as necessary to ensure timely project completion if note proceeds and other available funds prove insufficient.

The private offering will target qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. The notes have not been registered under the Securities Act of 1933.

Core Scientific operates data centers for high-density colocation services across multiple states. The company previously derived most revenue from digital asset mining but is transitioning toward colocation services revenue.

The offering completion remains subject to market and other conditions, according to the company's press release statement.