Bitcoin Miner Extends Debt Maturities and Reduces Coupon Burden
IREN, a leading bitcoin mining company, has completed a significant refinancing and debt restructuring effort, raising $2.3 billion through a convertible senior notes offering while repurchasing $544.3 million of existing debt. These strategic moves aim to strengthen the balance sheet, reduce interest expenses, and support long-term growth.
Convertible Notes Issuance and Terms
The new issuance includes $1 billion of 0.25% notes due 2032, $1 billion of 1% notes due 2033, and a $300 million greenshoe to meet strong investor demand. The transactions generated approximately $2.27 billion in net proceeds, providing capital to fund general corporate purposes and working capital, while also extending the maturity profile of IREN’s convertible debt.
To mitigate potential share dilution, IREN executed capped-call transactions providing protection up to $82.24 per share. The new notes do not include investor put rights, except for standard provisions linked to fundamental changes, ensuring flexibility in managing the company’s capital structure.
Debt Repurchase and Impact
The repurchase targeted $316 million of 3.50% notes due 2029 and $227.7 million of 3.25% notes due 2030, funded through a direct placement of roughly 39.7 million ordinary shares. This move reduces the company’s annual cash coupon burden, extends debt maturities, and improves financial stability ahead of future expansion.
Following the transactions, IREN plans to use remaining proceeds to support bitcoin mining operations and data center growth, aligning capital allocation with operational priorities. Despite these strategic measures, the stock traded slightly lower, reflecting market volatility.
Disclaimer
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