$926M senior secured Term Loan B (Moody's Baa2 — first IG-rated TLB by a private neocloud, per company)
- Borrower
- Lambda Compute II LLC (Delaware bankruptcy-remote SPV; obligations guaranteed by operating subsidiary Lambda Cloud Canada Inc.)
- Seniority
- Senior secured (first lien)
- Maturity
- 2030-12-31 — Fully amortizing; company states the profile is aligned with contracted cash flows and the useful life of the underlying GPU infrastructure
- Collateral
- First lien on GB300 GPU computing infrastructure at a single QScale data center site (Quebec, Canada) plus assignment of the take-or-pay Master Services Agreement with NVIDIA Corporation (Moody's Aa1, positive) as collateral; data center lease and purchase orders also assigned. No direct agreement among SPV, lenders and NVIDIA (noted as a rating constraint).
- Lenders
- Morgan Stanley (lead left arranger, bookrunner, administrative agent) · MUFG (joint bookrunner) · Syndicate not named
- Pricing
- SOFR + 3.00% at 99.5 OID; tightened 75bp during syndication; >=95% of principal required to be hedged through maturity (effectively fixed)
- Terms
- Moody's assigned first-time Baa2 (stable) 2026-08-11 to the proposed ~$917M facility; priced 2026-08-12 at $926M (upsized) — expected close August 2026. Offtaker = NVIDIA under take-or-pay MSA (availability-based fixed-price payments, no volume/price exposure; SLA credits up to 30%, regime noted by Moody's as more onerous than other non-recourse GPU financings). Moody's base case: DSCR ~1.20x, GPU utilization 70%, PUE 1.20; 3-month DSRA + 3-month opex reserve (vs 6-month typical); single draw; power unhedged (Hydro-Quebec regulated). NVIDIA context per Moody's: material equity interest in Lambda + guarantee of >$2B of Lambda data center lease payments. Company framing 'first IG-rated TLB by a private neocloud' carried as claim only.
Source: Lambda company release (priced 2026-08-12) + Moody's Ratings rating action 'Moody's Ratings assigns first-time Baa2 rating to Lambda Compute II LLC' (2026-08-11, New York; access-restricted, on file) · document