TechFlow News, bitcoin mining company Core Scientific announced plans to privately offer $350 million in aggregate principal amount of senior convertible notes due 2029 to qualified institutional buyers.
The company may also grant the initial purchasers an option to purchase up to an additional $52.5 million in aggregate principal amount of notes within 13 days of the initial issuance date. The notes will be senior unsecured obligations of Core Scientific, with interest payable semi-annually, and will mature on September 1, 2029, unless earlier converted, redeemed, or repurchased. Noteholders will have the right to convert the notes into cash, shares of common stock, or a combination of both under certain circumstances.
The company intends to use the net proceeds to fully repay outstanding loans under the credit and guaranty agreement dated January 23, 2024, redeem all outstanding senior secured notes due 2028, and for general corporate purposes, including working capital, operating expenses, capital expenditures, and acquisitions of complementary businesses.
