Keel Infrastructure Corp. has completed its private placement of $458 million in convertible senior notes. The offering included the full exercise of a $58 million option by the initial purchasers. In connection with the offering, the company also entered into capped call transactions to mitigate potential shareholder dilution.
Key Details
- Offering Details: Issued $458 million in aggregate principal amount of 1.250% Convertible Senior Notes, which are scheduled to mature on January 15, 2032.
- Conversion Terms: The notes have an initial conversion price of approximately $7.41 per share, which is equivalent to a conversion rate of 134.9073 shares of common stock per $1,000 principal amount.
- Dilution Mitigation: The company entered into capped call transactions for approximately $41.7 million, which are expected to reduce potential stock dilution from future conversions of the notes. The cap price for these transactions is initially $11.86 per share.
- Guarantee: The notes are senior, unsecured obligations and are fully guaranteed on a senior, unsecured basis by Bitfarms Ltd.