TeraWulf Inc. intends to offer $400 million aggregate principal amount of convertible senior notes due 2031 in a private offering.
The net proceeds will be used to pay for capped call transactions and finance data center expansion.
The Convertible Notes will be convertible into cash, common stock, or a combination, based on the Company's election.
Private Offering
$400 million Convertible Notes offering to qualified institutional buyers.
Use of Proceeds
Cost of capped call transactions and data center expansion financing.
Convertible Terms
Interest payable semi-annually; maturity on September 1, 2031; convertible conditions apply.
Capped Call Transactions
Expected to reduce potential dilution to common stock upon conversion.
- The offering aims to strengthen TeraWulf's financial position and support its digital infrastructure expansion.
- Convertible Notes provide flexibility in financing and potential future stockholder approval for conversions.
- Capped call transactions mitigate dilution risks and enhance conversion benefits for investors.
Overall, TeraWulf's proposed private offering of Convertible Notes signifies a strategic move to secure funding for expansion and optimize financial structures.