$IREN Ltd(IREN)$ IREN's conver

$IREN Ltd(IREN)$ IREN's convertible note is quite something. $2.6 billion of 1.00% convertible senior notes due 2033, upsized from $2 billion, with an extra $400 million option. The very low coupon points to strong demand, giving the company sizable funding at minimal cash interest cost.

The initial conversion price is set at about $73.07 per share, a 32.5% premium to the prior $55.15 share price. This pushes potential equity dilution out to higher price levels. Capped call transactions with a $110.30 cap further reduce dilution risk up to a 100% premium.

Net proceeds are roughly $2.57 to $2.96 billion after funding the capped calls, earmarked mostly for general corporate purposes and working capital. Future periodic reports should show how quickly this capital gets deployed and how conversion and hedging activity interacts with the share price.

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