Key Takeaways
- • Galaxy Digital's subsidiary, Galaxy Helios Data Centers II LLC, priced a $3.507 billion private offering of 9.875% senior secured notes due August 1, 2031, with closing expected July 28, 2026.
- • Net proceeds will finance development and construction of two data center buildings containing eight halls with 400 MW of utility capacity and 260 MW of critical IT capacity on a 260-acre property in Dickens County, Texas.
- • Notes carry a 9.875% annual coupon paid semi-annually and amortize at 4.00% per annum of original principal, with amortization commencing at least ten months after project completion.
- • The debt is fully guaranteed by Galaxy Helios II LLC and constitutes senior secured obligations backed by first-priority liens on substantially all assets of the issuer and guarantor, plus equity interests held by the direct parent company.
- • This financing underscores Galaxy Digital's strategic expansion in data center infrastructure supporting digital asset operations, a capital-intensive segment requiring substantial secured debt markets access.
Summary
Galaxy Digital Inc. announced the pricing of a $3.507 billion private offering of senior secured notes through its indirect wholly-owned subsidiary Galaxy Helios Data Centers II LLC on July 23, 2026. The notes carry a coupon of 9.875% per annum and mature on August 1, 2031, with the offering expected to close on July 28, 2026, subject to market and customary closing conditions.
The company intends to deploy net proceeds primarily toward financing development and construction of a major data center complex in Dickens County, Texas. The project encompasses two buildings with eight data halls offering a combined 400 megawatts of utility capacity and 260 megawatts of critical IT capacity across approximately 260 acres. Additionally, proceeds will fund debt service reserves, providing a liquidity cushion for the issuer.
The note structure reflects the capital-intensive nature of data center development. Interest accrues at 9.875% per annum, payable semi-annually in cash in arrears on February 1 and August 1 each year, beginning February 1, 2027. Principal amortization occurs at a rate of 4.00% per annum of the original principal amount, with amortization payments commencing semi-annually at least ten months following project completion. This graduated repayment structure aligns principal reduction with the asset's operational maturity.
The notes are fully and unconditionally guaranteed by Galaxy Helios II LLC, a direct subsidiary of the issuer, and constitute senior secured obligations. Security is provided through first-priority liens on substantially all assets of both the issuer and guarantor (excluding certain carve-outs) and all equity interests held by the direct parent company. This senior secured structure and comprehensive collateral package reflect the institutional debt capital markets' appetite for digital infrastructure assets underpinning cryptocurrency and data services operations.
The company intends to deploy net proceeds primarily toward financing development and construction of a major data center complex in Dickens County, Texas. The project encompasses two buildings with eight data halls offering a combined 400 megawatts of utility capacity and 260 megawatts of critical IT capacity across approximately 260 acres. Additionally, proceeds will fund debt service reserves, providing a liquidity cushion for the issuer.
The note structure reflects the capital-intensive nature of data center development. Interest accrues at 9.875% per annum, payable semi-annually in cash in arrears on February 1 and August 1 each year, beginning February 1, 2027. Principal amortization occurs at a rate of 4.00% per annum of the original principal amount, with amortization payments commencing semi-annually at least ten months following project completion. This graduated repayment structure aligns principal reduction with the asset's operational maturity.
The notes are fully and unconditionally guaranteed by Galaxy Helios II LLC, a direct subsidiary of the issuer, and constitute senior secured obligations. Security is provided through first-priority liens on substantially all assets of both the issuer and guarantor (excluding certain carve-outs) and all equity interests held by the direct parent company. This senior secured structure and comprehensive collateral package reflect the institutional debt capital markets' appetite for digital infrastructure assets underpinning cryptocurrency and data services operations.
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