**Iren Ltd. Plans $2 Billion Convertible Bond Offering for AI Expansion**
Iren Ltd., a data center company specializing in artificial intelligence and high-performance computing, is aiming to raise $2 billion through two convertible bond offerings. The firm announced plans to issue $1 billion in notes maturing in 2032 and another $1 billion maturing in 2033. The 6.5-year bond is expected to have a coupon rate between 0% and 0.25%, while the 7.5-year bond is projected to offer a coupon of 0.5% to 1%, according to sources familiar with the matter.
Based in Sydney, Iren is part of a growing group of neoclouds—smaller infrastructure providers addressing the surging demand for AI computing resources. Notably, Microsoft Corp. recently entered into a significant five-year agreement worth approximately $9.7 billion to secure additional computing capacity.
Following the announcement, Iren’s stock experienced a decline of 6.4%, trading at $45.38 in after-hours markets as of 5:13 p.m. on Monday in New York. Both convertible bonds will feature a conversion premium ranging from 25% to 30%, as reported by insiders who requested anonymity due to the confidential nature of the information.
In addition to the bond offerings, Iren is conducting a private share sale and is also looking to repurchase some of its existing convertible bonds maturing in 2029 and 2030. The funds raised from these initiatives will be allocated for various purposes, including financing capped call transactions.
Citigroup Inc., Goldman Sachs Group Inc., and JPMorgan Chase & Co. are facilitating the share sale and the convertible bond issuance. A spokesperson for JPMorgan declined to comment, while representatives from Iren, Citigroup, and Goldman Sachs did not respond immediately to requests for further information.
As Iren Ltd. moves forward with its fundraising efforts, the company is poised to enhance its capabilities in the rapidly evolving AI landscape, positioning itself to meet the increasing demands of the market.
**FAQ**
*What is Iren Ltd. planning to do with the funds raised from the convertible bonds?*
Iren Ltd. intends to use the proceeds from the convertible bond offerings for various purposes, including funding capped call transactions and supporting its expansion in the AI computing sector.