AI Data Center Firm Iren Seeks $2 Billion in Convertible Bonds

(Bloomberg) — Iren Ltd., a data center company focused on artificial intelligence and high-performance computing, aims to raise $2 billion through the issuance of two convertible bonds.

According to the statement made on Monday, the company is offering another $1 billion bond due in 2032 and another $1 billion bond due in 2033. According to sources familiar with the matter, the 6.5-year tranche is marketed with a coupon of 0 percent to 0.25 percent, while the 7.5-year bond is marketed with a coupon of 0.5 percent to 1 percent.

The Sydney-based firm is one of several neocloud, small infrastructure providers aiming to meet the seemingly bottomless demand for AI computing capacity. Microsoft Corp. in November signed a five-year deal worth about $9.7 billion to buy computing capacity.

Iren’s shares fell 6.4% to $45.38 in after-hours trading as of 5:13 p.m. in New York on Monday.

Both convertible bonds come with a conversion premium of 25% to 30%, said the people, who asked not to be identified because the information is not public.

According to a different statement, Iren is separately running a private stock offering and is also trying to buy back some of the existing convertible bonds due in 2029 and 2030. Proceeds from the offering will be used for purposes including financing capped call transactions.

According to the statement, Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. is working on selling shares. Sources said all three banks were working on the convertible issue.

A spokesman for JPMorgan declined to comment. Representatives for Iren, Citigroup and Goldman Sachs did not immediately respond to requests for comment.

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