(Bloomberg) -- Iren Ltd., a data center firm focused on artificial intelligence and high-performance computing, is seeking to raise $2 billion across two convertible bond issues.
The company is offering $1 billion of notes due 2032 and a further $1 billion due 2033, according to a statement Monday. The 6.5-year tranche is being marketed with a 0% to 0.25% coupon, while the 7.5 year issue has a 0.5% to 1% coupon, according to people familiar with the matter.
The Sydney-based firm is one of several so-called neoclouds, small infrastructure providers that aim to satisfy the seemingly bottomless demand for AI computing capacity. Microsoft Corp. struck a roughly $9.7 billion five-year deal in November to buy computing capacity.
Iren’s shares fell 6.4% to $45.38 each in after-hours trading as of 5:13 p.m. Monday in New York.
Both convertible bonds come with a conversion premium of 25% to 30%, the people said, asking not to be identified as the information isn’t public.
Iren is separately conducting a private share offering and concurrently seeking to repurchase some of its existing convertible bonds due 2029 and 2030, a different statement shows. The proceeds from the offering will be used for purposes including funding capped call transactions.
Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. are working on the share sale, according to the statement. The three banks are also working on the convertible issue, the people said.
A spokesperson for JPMorgan declined to comment. Representatives for Iren, Citigroup and Goldman Sachs didn’t immediately respond to requests for comment.
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