Cipher Digital Prices $850 Mln Convertible Notes Due 2032

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(RTTNews) - Cipher Digital Inc. (CIFR), a developer and operator of industrial-scale data centers, on Wednesday announced that it priced a private offering of $850 million in 0.00% convertible senior notes due 2032.

The company said the offering includes an option for initial purchasers to buy up to an additional $150 million in notes.

The notes are expected to settle on October 16 and will mature on November 1, 2032.

The initial conversion price is approximately $15.31 per share, representing a 35% premium over the company's closing share price of $11.34 on October 13.

The company expects net proceeds of approximately $835.1 million, or $982.5 million if the additional notes option is fully exercised.

The company intends to use approximately $89.7 million to fund capped call transactions designed to reduce potential share dilution.

The remaining proceeds will fund an additional equity investment in the Barber Lake project.

The company will also use the proceeds to expand its high-performance computing strategy and development-site pipeline.

The remaining funds will be used for general corporate purposes.

Concurrently, the company expects to exchange approximately $165.9 million in principal amount of its 1.75% convertible senior notes due 2030 for approximately 40.7 million shares of common stock.

In the pre-market trading, Cipher Digital Inc. is 1.68% lesser at $11.15 on the Nasdaq.