IREN Shares Slide on Major Convertible Note Offering

IREN (IREN) declined 9% after the company unveiled a large-scale financing package totaling $2B in new convertible senior notes, split between:

$1B in 2032 convertible senior notes
$1B in 2033 convertible senior notes

Each offering also includes an optional $150M add-on, expanding the company’s potential raise even further.

The senior unsecured notes will pay semiannual interest and include standard features such as:

Conversion rights
Optional redemption provisions
Fundamental-change repurchase rights

Equity Offering Planned to Support Debt Repurchase

Registered Direct Offering Targets Older Notes

To support repurchasing its earlier debt, IREN will also conduct a registered direct equity offering. Proceeds will help fund privately negotiated repurchases of its:

2029 convertible notes
2030 convertible notes

The company said the goal is to reduce outstanding debt and improve its long-term balance-sheet structure.

Strategic Motivation Behind the Financing

The new financing enables IREN to:

Push out debt maturities to 2032 and 2033
Use equity proceeds to retire shorter-dated obligations
Improve liquidity and debt flexibility
Position itself more efficiently for future expansion

However, the scale of the offering and equity dilution concerns weighed heavily on the stock.