IREN up after pricing $2 bln convertible bonds offering, direct stock deal

IREN

03/12/2025 12:44

** Shares of data center operator IREN IREN.O up 2.7% premarket at $42.23 after capital raise to refinance debt

** Australia-based IREN announces pricing private offerings of $1 bln 0.25% convertible bonds (CBs) due 2032 and $1 bln 1% CBs due 2033

** In addition, IREN sells ~39.7 mln shares at $41.12 for about $1.6 bln in registered direct offering to facilitate hedging

** IREN to use net proceeds from transactions to repurchase about $228 mln of existing 3.25% CBs due 2030 and about $317 mln of existing 3.5% CBs due 2029

** Co also to use proceeds to fund capped calls to help offset dilution, and for general purposes and working capital

** IREN shares on Tues tumbled 15% to close at $41.12 after co late Mon unveiled the offerings

** Through Tues, IREN shares have more than quadrupled YTD. They hit record intraday high of $76.87 on Nov 5

** On Nov 3, IREN inked a $9.7 bln AI cloud deal with Microsoft MSFT.O that will provide the tech giant access to Nvidia's NVDA.O advanced chips

** Of 13 analysts covering IREN, 9 rate the stock "strong buy" or "buy", 2 rate "hold" and 2 recommend "sell"; median PT is $80, per latest LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))