IREN Limited Upsizes $2.6B Convertible Notes Offering with 1.00% Coupon
IREN Limited priced an upsized $2.6B convertible senior notes offering at 1.00% coupon due 2033, 32.5% conversion premium with initial conversion price $73.07 and capped call hedges at $110.30 cap price. Net proceeds of $2.57B (up to $2.96B if option exercised) will fund $174.5M of hedges and general corporate uses.
1. Offering Details
IREN priced a private offering of $2.6 billion aggregate principal amount of 1.00% convertible senior notes due 2033, upsized from $2.0 billion, with an option for purchasers to buy up to an additional $400 million principal amount within 13 days of issuance. The initial conversion premium is 32.5% over the May 11 share price.
2. Terms and Conversions
The notes will accrue 1.00% annual interest payable semi-annually and mature on December 1, 2033, with conversions allowed upon certain events before September 1, 2033, and at any time thereafter. The initial conversion rate is 13.6848 shares per $1,000 principal amount (conversion price $73.07), subject to adjustment.
3. Use of Proceeds and Hedging
Net proceeds are expected to be approximately $2.57 billion, or $2.96 billion if the full option is exercised, with $174.5 million earmarked for capped call transactions that hedge potential dilution up to a $110.30 cap price. Remaining proceeds will fund general corporate purposes and working capital.