1Sem.·

IREN Closes Upsized $550m Convertible Notes Offering

Aus dem Newsletter, kann das jemand mal einordnen (mir fehlt da das Wissen)?

"Dear All,

We are pleased to announce the closing of $IREN (+4,04 %) ’s upsized $550m convertible notes offering.

Key details of the transaction:

Oversubscribed and upsized from $450m to $500m, plus $50m greenshoe
Net proceeds of approximately $534.9m
3.50% coupon, 30% conversion premium
No put option for investors in the notes (other than a customary put right in the case of certain fundamental changes)
Capped call transactions are generally expected to provide a hedge upon conversions up to an initial cap price of $20.98 per share, which represents a 100% premium (as compared to the 30% conversion premium under the notes)
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC acted as active bookrunners"

3 Commentaires

Brody@Brody

1Sem.

$IREN is a growth company that would not have been able to obtain a conventional loan on these terms. The issue of convertible bonds therefore makes sense. The oversubscription can also be seen as a positive, as demand appears to have been strong. The hedging part with derivatives is intended to limit dilution if investors convert their bonds into shares. The 30% premium can be interpreted to mean that the company expects the share price to rise by at least 30% by 2030.

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Bastibroschi@Bastibroschi

1Sem.

@Brody Well, by and large, yes. However, the 30% premium has nothing to do with a minimum price by 2030. The premium is simply the lower risk of having a bond that can be exchanged for shares instead of investing directly in shares. With convertible notes, you have the choice of whether you want your bond to be repaid or whether you would rather have shares at that time.

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Brody@Brody

1Sem.

@Bastibroschi You describe the scenario from the investor's point of view. I am describing it from the perspective of the issuer, who calculates that the conversion price threshold will be reached.

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