IREN Limited (NASDAQ: IREN) announced the completion of a $3 billion 1.00% convertible senior notes offering, with the notes maturing in 2033. This offering includes a $2.6 billion principal issuance and a $400 million overallotment option (fully exercised), generating net proceeds of approximately $2.96 billion. The conversion premium on the notes is 32.5%, and investors have no redemption rights.
IREN has simultaneously entered into capped call transactions, with an initial cap price of $110.30 per share (representing a 100% premium over the benchmark stock price), to hedge against potential equity dilution from the conversion of the notes. The related cost is approximately $201.3 million. The remaining funds will be used for general corporate purposes and working capital. IREN is a vertically integrated AI cloud service provider, focusing on delivering large-scale data centers and GPU cluster services for AI training and inference, with operations spanning North America, Europe, and the Asia-Pacific region.