IREN (IREN) Tumbles 15% on Billion-Dollar Fundraising from New Shares, Convertible Notes

IREN +4.20%

We recently published 10 Stocks Deep in the Red. IREN Ltd. (NASDAQ:IREN) is one of the worst performers on Tuesday.

IREN Ltd. declined by 15.20 percent on Tuesday to close at $41.12 apiece as investor sentiment was dampened by announcements that it plans to raise more than $2.3 billion in fresh funds from the issuance of convertible senior notes and new shares.

In a statement on the same day, IREN Ltd. (NASDAQ:IREN) said that it would issue two series of convertible senior notes worth $1 billion each—one due 2032, while the other one to mature in 2033.

Noteholders for each series have the option to buy more notes up to an additional $150 million each, for a total of $300 million.

The notes are convertible into shares, which means they could result in a potential dilution to the shareholdings of existing shareholders.

IREN Ltd. (NASDAQ:IREN) said net proceeds from the offer will be used to repurchase a portion of existing convertible notes for cash, alongside other general corporate purposes, among others.

In addition, IREN Ltd. (NASDAQ:IREN) is also looking to issue new shares to raise funds to finance the buyback of old debt that is set to mature in 2029 and 2030.

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Disclosure: None. This article is originally published at Insider Monkey.