Cipher Digital Plans $850 Million of Zero-Coupon Convertible Notes to Fund Its Barber Lake Data Centre and HPC Build-Out
Cipher Digital said on October 13 it intends to offer $850 million of 0.00% convertible senior notes due 2032 in a private placement, with proceeds going to capped calls, its Barber Lake project and its high-performance computing pipeline. It also plans to exchange part of its 2030 notes for stock.
Data-centre developer Cipher Digital plans to raise $850 million in 0.00% convertible senior notes due 2032, the company said on Tuesday, October 13, to put more money into its Barber Lake project and its high-performance computing (HPC) build-out. The private offering is subject to market conditions, and final terms will be set at pricing.
Terms announced
Cipher says the notes will not bear regular interest and will mature on November 1, 2032. It expects to give initial purchasers a 13-day option to buy up to $150 million more, the company says.
Cipher says it will use the proceeds to fund capped call transactions meant to reduce potential dilution, then for additional equity investment in Barber Lake, its near-term HPC pipeline, new development sites and general corporate purposes.
Separately, Cipher says it expects to exchange part of its outstanding 1.75% convertible notes due 2030 for common stock in privately negotiated deals.
Limits
- The offering had not priced when announced; size and terms may change.