Telecommunications High Yield Weekly: Weekly Update

Research evidence excerpt

Telecommunications High Yield Weekly: Weekly Update

News Summary

Telecommunications sector performance for the week ended July 10, 2026

• The ICE BofA High Yield Telecommunications Index returned 0.0% over the week

(Thursday to Thursday) and currently offers a YTW of 7.8%; this compares to a

weekly return of 0.1% and a YTW of 7.1% for the ICE BofA High Yield Master index.

TeraWulf - Agreed to sell 50.1% stake in Abernathy JV (aka Flash Compute) to

Fluidstack; Bloomberg reported potential for $3.5Bn new debt issuance for

Anthropic-leased data center

• TeraWulf agreed to sell its 50.1% ownership interest in the Abernathy joint venture

(JV) to a Fluidstack-led investor group for $530 million, which is a premium to its

$450 million initial investment. Recall, the Abernathy JV is 50.1% owned by

TeraWulf and 49.9% by Fluidstack and was established to develop a 168 MW critical

IT load AI data center campus in Abernathy, Texas, which was funded via the

issuance of $1.275 billion of 7.25% secured notes ‘30 by Flash Compute (FLASHC),

the JV’s debt-issuer subsidiary. Recall, as of its 1Q26 earnings update in May,

Terawulf has said that construction at the Abernathy data center campus was

progressing well and delivery continued to be targeted for 4Q26. TeraWulf said the

sale of the JV stake would “unlock… significant capital for redeployment into wholly

owned AI infrastructure opportunities.”

• In conjunction with the JV stake sale announcement, TeraWulf announced that it

entered into a 20-year lease with Anthropic for 401MW of critical IT load capacity at

its Justified Data campus in Hawesville, KY. See additional details on the planned

deployment in the report by our BofA Equity Research colleague, Michael Funk:

WULF derisks Kentucky DC development.