Latham Advises on Meridian Arc HoldCo’s US$5.7 Billion Senior Secured Notes Offering to Finance AI Data Center

Meridian Arc HoldCo LLC (the issuer), an indirect wholly owned subsidiary of Meridian Compute LLC (Meridian Compute), a joint venture between subsidiaries of Frontier Development Holdings LP (Next Frontier) and Fluidstack Ltd., has priced an offering of US$5.7 billion aggregate principal amount of its 6.25% senior secured notes due 2031 (the notes). The net proceeds from the offering will be used (i) to fund the acquisition of an approximately 140‑acre property comprising multiple parcels in New Lebanon, Sullivan County, Indiana; (ii) to finance the development and construction of a 245‑MW Critical IT capacity turnkey data center, a 185‑MW Critical IT capacity turnkey data center, and an on‑site electrical substation to provide dedicated electrical service and capacity to be built on the property; (iii) to fund debt reserves; and (iv) to pay fees and expenses in connection with the foregoing. The issuer will issue the notes under an indenture in a private offering exempt from registration under the Securities Act of 1933, as amended.

Latham & Watkins LLP represented Next Frontier, which is currently being incubated by Coatue Management, in the transaction with a corporate team led by partners Tracey Zaccone, Greg Rodgers, Benjamin Stern, and Brittany Ruiz, with associates Shawn Quinn and Samuel Vallejo. Advice was also provided on real estate matters by partners Rachel Bates, Ann Buckingham, and Michael Rechtin, with associates Rebekah Biddle and Vasi Mitrakos; on power matters by partner Natasha Gianvecchio and counsel Anna Biegelsen; and on tax matters by partner Christine Mainguy, with associate James Aldred.