New ERA Energy & Digital: enters $116,000,000 letter of credit agreement

What happened

• The filing says that on Oct 7, 2026, TCDC PowerCo LLC and Texas Critical Data Centers LLC, each a subsidiary of New ERA Energy & Digital, Inc., entered into a Letter of Credit Reimbursement Agreement with Macquarie Bank Limited. Under the agreement the Bank caused the issuance of a $116,000,000 standby letter of credit in favor of Luminant ET Services Company LLC to secure PowerCo’s obligations under a power purchase agreement.
• The filing says PowerCo must reimburse the Bank for any drawing under the letter of credit with interest at 12% per annum, and that Texas Critical Data Centers LLC unconditionally guaranteed PowerCo’s obligations. The reimbursement obligations are secured by a first-priority security interest in cash collateral equal to not less than 102% of the undrawn face amount of the letter of credit (approximately $118,320,000 at issuance).

Key details

• $116,000,000 standby letter of credit issued by Macquarie Bank Limited in favor of Luminant on Oct 7, 2026.
• Cash collateral required at not less than 102% of the undrawn face amount (about $118,320,000). $60,000,000 of the initial collateral was funded with proceeds of Term Loan A-2 and Term Loan A-3 under the company’s Apr 8, 2026 Term Loan Agreement; approximately $58,320,000 was funded with cash on hand by PowerCo and TCDC.
• PowerCo will pay a fronting fee of 1.00% of the face amount at issuance and a letter of credit fee of 2.00% per annum payable quarterly; reimbursement interest is 12% per annum. In connection with the $60,000,000 draw under the Term Loan Agreement, the company issued warrants to purchase 413,055 shares of common stock at an exercise price of approximately $7.26.
• The filing says the company expects to refinance the outstanding borrowings under the Term Loan Agreement in the near future.

Why it may matter

• Item 1.01 (entry into a material definitive agreement) covers the Reimbursement Agreement and the $116,000,000 standby letter of credit that secures PowerCo’s PPA obligations. Item 3.02 (unregistered sales of equity securities) is reflected by the issuance of warrants to the lender. Item 8.01 (other events) states the company has begun pursuing leases with hyperscale tenants for the Texas Critical Data Center project rather than developing the project through a joint venture.
• The filing includes forward-looking statements about leasing strategy, financing and risks and references the company’s Form 10-K for additional risk disclosures.

The filing does not show why the insider traded or why the company acted.