Global law firm White & Case LLP has advised WhiteFiber, Inc. (NASDAQ: WYFI), a provider of artificial intelligence infrastructure and high-performance computing solutions, on a term loan between Enovum NC-1 Venture, LLC, an indirect wholly owned subsidiary of WhiteFiber, Inc., as borrower, and Bit Digital Capital, Inc., a wholly owned subsidiary of Bit Digital, Inc. (NASDAQ: BTBT), as lender. B. Riley Securities, Inc. purchased a portion of the term loan under the facility from Bit Digital Capital, Inc.
The bridge loan provides for loans in an aggregate principal amount of up to US$100 million, which may be increased to US$150 million upon mutual agreement of the parties, with an initial interest rate of 9.5 percent per annum. WhiteFiber intends to use the proceeds for general corporate purposes, which may include the completion of the buildout of the first phase of an HPC data center located in Madison, North Carolina, being developed by affiliates of WhiteFiber, subject to the timing of the closing of permanent financing, as well as other growth initiatives.
The board of directors of WhiteFiber received the written opinion of Seaport Global Securities, LLC to the effect that, as of the date of such opinion and based upon and subject to the factors and assumptions set forth therein, the terms of the term loan are fair, from a financial point of view, to WhiteFiber and its unaffiliated minority shareholders. The term loan transaction was approved by an independent committee of WhiteFiber’s board of directors. White & Case LLP advised the WhiteFiber independent committee on related governance matters.
The White & Case team was led by M&A partner Prat Vallabhaneni (New York) and Capital Markets partner Laura Katherine Mann (Houston), and included Erica Hogan (New York), Tax partner Neil Clausen (Houston), Capital Markets associate Melissa Curvino (New York), Tax associate Kealan Hannes (Houston) and M&A associate Heather Luu (Houston).
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