IREN prices $2 billion convertible notes offering

IREN Limited (NASDAQ: IREN) announced the pricing of $2 billion in convertible senior notes in a private offering to qualified institutional buyers.

The offering consists of $1 billion in notes due 2032 with a 0.25% coupon and $1 billion in notes due 2033 with a 1.00% coupon. Both series carry a 25% conversion premium over the December 2 closing price of $41.12 per share.

The notes will convert at an initial rate of 19.4553 ordinary shares per $1,000 principal amount, representing a conversion price of approximately $51.40 per share. IREN granted initial purchasers options to purchase up to an additional $150 million of each series within 13 days of issuance.

The company entered into capped call transactions with a cap price of $82.24 per share, representing a 100% premium over the December 2 closing price. These transactions are designed to reduce potential dilution from conversions up to the cap price.

IREN also priced a concurrent equity offering of 39.7 million ordinary shares at $41.12 per share to fund the repurchase of existing convertible notes. The company plans to repurchase approximately $227.7 million of its 2030 convertible notes and $316.6 million of its 2029 convertible notes for a total repurchase price of approximately $1.63 billion.

The company estimates net proceeds of approximately $1.97 billion from the notes offering, which will fund the capped call transactions costing $174.8 million, the convertible notes repurchase, and general corporate purposes.

The notes will be senior unsecured obligations with interest payable semi-annually. Settlement is scheduled for December 8, 2025, subject to customary closing conditions.

You May Also Be Interested In

• Correction: Kepler Cheuvreux Upgrades Siemens AG (SIE:GR) (SIEGY) to Hold
• JPMorgan Assumes Kanzhun Ltd. (BZ) at Overweight
• ​Trump said he was unaware of his earnings from crypto