Core Scientific, Inc. (Nasdaq: CORZ) has entered into $600 million in committed senior secured credit facilities, consisting of a $100 million revolving credit facility and a $500 million letter of credit facility, according to a company press release.

The revolving credit facility may be used for general corporate purposes and working capital needs, while the letter of credit facility may be issued to support obligations under utility agreements and other corporate purposes.

Chief Financial Officer Jim Nygaard said the facilities are expected to release approximately $300 million of restricted cash. "The facilities are expected to release approximately $300 million of restricted cash, meaningfully improving our capital efficiency and financial flexibility as we pursue opportunities in a dynamic and rapidly evolving industry," he said.

Borrowings under the revolving credit facility carry a three-year maturity and will bear interest at either Adjusted Term Secured Overnight Financing Rate plus 1.75% or an alternate base rate plus 0.75%, at the company's election. Letters of credit under the letter of credit facility will carry an annual fee of 1.75% on outstanding amounts, plus a 0.125% annual fronting fee.

The company's obligations are guaranteed by certain wholly owned domestic subsidiaries and secured by a first-priority lien on substantially all assets of the company and its guarantors.

Morgan Stanley Senior Funding, Inc. acted as Lead Left Arranger and Joint Bookrunner. JPMorgan Chase Bank, N.A. serves as Administrative Agent, Collateral Agent, Joint Lead Arranger and Joint Bookrunner. Goldman Sachs and TD Securities (USA) LLC also served as Joint Lead Arrangers and Joint Bookrunners. Commitments are expected to be allocated equally among the four institutions at closing.