Jun. 10 at 9:23 PM
The company is implementing two key hedging mechanisms alongside this offering. First, they're entering into capped call transactions that should reduce potential dilution from note conversions by effectively raising the conversion premium. These transactions only kick in when the stock price exceeds the cap price, providing partial protection against share dilution.
Second, IREN is executing a
$100 million prepaid forward repurchase transaction that will settle near the notes' maturity date. This transaction facilitates derivative positions for note investors while potentially offsetting some dilution effects.
What makes this offering particularly complex is the cash settlement requirement until shareholder approval for share repurchases is obtained. The company has structured these instruments to comply with jurisdictional incorporation laws while maintaining flexibility through potential future shareholder approvals.
$IREN $CLSKW