IREN plans share offering to fund convertible note repurchase

IREN Limited (NASDAQ: IREN) announced plans for a registered direct offering of ordinary shares to fund the repurchase of existing convertible notes, according to a company statement.

The AI cloud service provider intends to use proceeds from the share offering to repurchase portions of its outstanding 3.25% convertible senior notes due 2030 and 3.50% convertible senior notes due 2029. The 2030 notes have an initial conversion price of approximately $16.81 per share, while the 2029 notes have an initial conversion price of approximately $13.64 per share.

Separately, IREN announced plans for a private offering of $1 billion in convertible senior notes due 2032 and $1 billion in convertible senior notes due 2033, with initial purchasers having options to buy an additional $150 million of each series.

The company expects to use net proceeds from both offerings to fund capped call transactions related to the new convertible notes, repurchase existing convertible notes, and support general corporate purposes and working capital.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC are serving as placement agents for the registered direct offering.

The completion of each offering is not contingent on the others, and all transactions remain subject to market conditions. The company noted that no assurance can be provided regarding completion, timing, or final terms of any proposed offering.

IREN operates as an AI cloud service provider, delivering GPU clusters for artificial intelligence training and inference through data centers in renewable energy regions across the United States and Canada.

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