IREN Raises $2.3B, Repurchases Debt in Balance Sheet Overhaul

Core Insights - IREN, a bitcoin miner, completed a refinancing involving a $2.3 billion convertible senior-note offering and a $544.3 million repurchase of existing convertible notes [1][3] - The refinancing aims to reduce the average annual cash coupon burden and extend the maturity profile of IREN's convertible debt [3] Group 1: Refinancing Details - The new issuance consists of $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 [1] - The repurchase included $316 million of 3.50% notes due 2029 with a $13.64 conversion price and $227.7 million of 3.25% notes due 2030 with a $16.81 conversion price [3] Group 2: Capped-Call Transactions - IREN executed capped-call transactions to hedge against share dilution from note conversions, providing protection up to an initial $82.24 per share [2] Group 3: Use of Proceeds - After covering capped call costs and the repurchase, IREN plans to use the remaining proceeds for general corporate purposes and working capital to support the expansion of its bitcoin mining and data center operations [4] Group 4: Market Reaction - Following the announcement, IREN's stock fell 1% in pre-market trading to $45 per share, approximately 40% below its all-time high in November [4]