TeraWulf prices $850M convertible debt offering

TeraWulf (NASDAQ:WULF [https://seekingalpha.com/symbol/WULF]) has upsized and priced its offering [https://seekingalpha.com/pr/20204347-terawulf-inc-announces-upsize-and-pricing-of-850-million-convertible-notes-offering]of $850M aggregate principal amount of 1.00% convertible senior notes due 2031.

The notes will accrue interest at 1.00% per annum, payable semi-annually in arrears, and mature on September 1, 2031, unless earlier repurchased, redeemed, or converted in accordance with their terms.

The conversion rate will initially be 80.4602 shares of common stock per $1,000 principal amount of convertible notes, equivalent to an initial conversion price of ~$12.43 per share of the common stock.

TeraWulf has granted the initial purchasers a 13-day option to purchase up to an additional $150M. It estimates net proceeds from the offering of $828.7M, or ~$975.2M if the option to purchase additional notes is exercised in full.

Around $85.5M of the net proceeds from the offering will be used to pay the cost of the capped call transactions, with the remaining net proceeds to be used to finance a portion of the company’s data center expansion and for general corporate purposes.

WULF -1.28% premarket.

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