IREN (IREN), a Bitcoin miner, completed a refinancing combining a $2.3 billion senior convertible note offering with a $544.3 million repurchase of existing convertible notes.
The new issuance includes $1 billion of 0.25% notes due 2032, $1 billion of 1% notes due 2033 and a fully exercised $300 million greenshoe to meet excess demand.
IREN also executed capped call transactions intended to cover any dilution of the shares if the notes were converted, providing protection up to an initial amount of $82.24 per share. The notes do not include any investor selling rights, except for a standard provision related to fundamental changes, according to the announcement.
The redemption included $316 million of 3.50% notes due 2029 with a conversion price of $13.64 and $227.7 million of 3.25% notes due 2030 with a conversion price of $16.81. The repurchase was funded by a registered direct offering of approximately 39.7 million shares of common stock.
The combined transactions generated approximately $2.27 billion in net proceeds, reduced IREN’s average annual cash coupon charge and extended the maturity profile of its convertible debt.
After covering the capped call costs and buyout, IREN plans to use the remaining proceeds for general corporate purposes and working capital, supporting the continued expansion of its bitcoin mining and data center operations.
IREN fell 1% in premarket trading to $45 per share, about 40% below its November all-time high.
