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IREN Closes Upsized $3 Billion Convertible Notes for AI Cloud Push

The cash backs IREN's AI cloud pivot with capped calls limiting potential dilution.

Overview

  • IREN closed a $3.0 billion sale of 1% convertible senior notes due 2033 after increasing the size of the deal.
  • The transaction delivers about $2.96 billion in net proceeds, including $201.3 million set aside to buy capped-call hedges.
  • IREN says it will use the cash for general purposes and working capital as it shifts its business toward AI cloud services.
  • The notes carry a 32.5% conversion premium, which outside analysis translates to an initial conversion price near $73.07 per share.
  • The capped calls start at a $110.30 share price and are meant to cut share dilution if investors convert the notes under typical conditions.