IREN Closes $2.3 Billion Convertible Notes Offering and the Repurchase of Existing Convertible Notes

Core Viewpoint IREN Limited has successfully closed its offering of convertible senior notes and repurchased certain existing convertible notes, raising significant capital for corporate purposes and debt management [1][3][11]. Convertible Notes Offering - IREN closed an offering of $1.15 billion aggregate principal amount of 0.25% convertible senior notes due 2032 and $1.15 billion aggregate principal amount of 1.00% convertible senior notes due 2033 [3][8]. - The offering was conducted as a private placement to qualified institutional buyers under Rule 144A of the Securities Act [3][15]. - Major financial institutions including Citigroup, Goldman Sachs, and J.P. Morgan acted as bookrunners for the offering [4][9]. Repurchase of Existing Convertible Notes - Concurrently, IREN repurchased approximately $227.7 million of existing 3.25% convertible senior notes due 2030 and approximately $316.6 million of existing 3.50% convertible senior notes due 2029, totaling an aggregate repurchase price of approximately $1,632.4 million [5][8]. - The repurchase was funded through a Concurrent Equity Offering, which involved the sale of approximately 39.7 million ordinary shares at $41.12 per share [7][11]. Use of Proceeds - The net proceeds from the Convertible Notes Offering are approximately $2,270 million, which will be used for capped call transactions, repurchasing existing convertible notes, and general corporate purposes [10][11]. - The cost of entering into capped call transactions is estimated at $201 million, with remaining proceeds of $2,068 million allocated for working capital [11]. Capped Call Transactions - IREN entered into capped call transactions to hedge against potential dilution from the conversion of the notes, with an initial cap price of $82.24 per share [12][13]. - These transactions are designed to reduce dilution upon conversion and offset potential cash payments exceeding the principal amount of converted notes [14]. Company Overview IREN is recognized as a leading AI Cloud Service Provider, specializing in large-scale GPU clusters for AI training and inference, supported by a robust portfolio of grid-connected land and data centers in renewable-rich regions across the U.S. and Canada [17].