Core Scientific Announces Proposed Convertible Senior Notes Offering
Core Scientific (NASDAQ: CORZ) has announced plans to offer $500 million in convertible senior notes due 2031 through a private offering to qualified institutional buyers. The company may grant initial purchasers an option for an additional $75 million in notes. The notes will be senior, unsecured obligations with semi-annual interest payments. Noteholders can convert their notes to cash, common stock, or a combination thereof. The notes will be redeemable after June 22, 2028, subject to conditions, and holders can request repurchase on December 15, 2027. Proceeds will fund general corporate purposes, including working capital, operations, acquisitions, and security repurchases.
Core Scientific (NASDAQ: CORZ) ha annunciato piani per offrire 500 milioni di dollari in obbligazioni senior convertibili con scadenza nel 2031 tramite un'offerta privata a compratori istituzionali qualificati. L'azienda potrebbe concedere agli acquirenti iniziali un'opzione per ulteriori 75 milioni di dollari in obbligazioni. Le obbligazioni saranno obbligazioni senior non garantite con pagamenti di interessi semestrali. I detentori di obbligazioni possono convertire le loro obbligazioni in contante, azioni ordinarie o una combinazione dei due. Le obbligazioni saranno rimborsabili dopo il 22 giugno 2028, soggette a condizioni, e i detentori possono richiedere il riacquisto il 15 dicembre 2027. I proventi finanzieranno scopi aziendali generali, inclusi capitale circolante, operazioni, acquisizioni e riacquisti di azioni.
Core Scientific (NASDAQ: CORZ) ha anunciado planes para ofrecer 500 millones de dólares en notas senior convertibles con vencimiento en 2031 a través de una oferta privada para compradores institucionales calificados. La empresa puede otorgar a los compradores iniciales una opción por 75 millones de dólares adicionales en notas. Las notas serán obligaciones senior no aseguradas con pagos de intereses semestrales. Los tenedores de notas pueden convertir sus notas en efectivo, acciones ordinarias o una combinación de ambos. Las notas podrán ser redimidas después del 22 de junio de 2028, sujeto a condiciones, y los tenedores pueden solicitar la recompra el 15 de diciembre de 2027. Los ingresos se destinarán a fines corporativos generales, incluyendo capital de trabajo, operaciones, adquisiciones y recompra de valores.
Core Scientific (NASDAQ: CORZ)는 2031년 만기 convertible senior note 5억 달러를 자격이 있는 기관 투자가를 대상으로 한 사모 발행을 통해 제공할 계획을 발표했습니다. 회사는 최초 구매자에게 추가 7천5백만 달러 어치의 노트를 제공할 수 있는 옵션을 부여할 수 있습니다. 이러한 노트는 반기 이자 지급이 있는 선순위 무담보 채무입니다. 노트 보유자는 노트를 현금, 보통주 또는 이들의 조합으로 전환할 수 있습니다. 노트는 2028년 6월 22일 이후 상환 가능하며, 조건에 따라 보유자는 2027년 12월 15일에 재매입을 요청할 수 있습니다. 수익금은 운영자본, 운영, 인수 및 자산 재매입 등 일반 기업 목적을 위한 자금으로 사용됩니다.
Core Scientific (NASDAQ: CORZ) a annoncé des plans pour offrir 500 millions de dollars en obligations senior convertibles arrivant à échéance en 2031 par le biais d'une offre privée à des acheteurs institutionnels qualifiés. L'entreprise peut accorder aux premiers acheteurs une option pour des 75 millions de dollars supplémentaires en obligations. Les obligations seront des engagements seniors non garantis avec des paiements d'intérêts semestriels. Les détenteurs d'obligations peuvent convertir leurs obligations en espèces, en actions ordinaires ou en une combinaison des deux. Les obligations seront rachetables après le 22 juin 2028, sous réserve de conditions, et les détenteurs peuvent demander un rachat le 15 décembre 2027. Les produits financeront des fins générales d'entreprise, y compris le fonds de roulement, les opérations, les acquisitions et les rachats de titres.
Core Scientific (NASDAQ: CORZ) hat Pläne angekündigt, 500 Millionen Dollar in umwandelbaren vorrangigen Anleihen mit Fälligkeit 2031 über ein privates Angebot an qualifizierte institutionelle Käufer anzubieten. Das Unternehmen kann den ursprünglich Käufern eine Option auf zusätzliche 75 Millionen Dollar an Anleihen gewähren. Die Anleihen werden vorrangige, unbesicherte Verbindlichkeiten mit halbjährlichen Zinszahlungen sein. Anleiheinhaber können ihre Anleihen in Bargeld, Stammaktien oder eine Kombination davon umwandeln. Die Anleihen können nach dem 22. Juni 2028 einlösbar sein, vorbehaltlich von Bedingungen, und die Inhaber können am 15. Dezember 2027 einen Rückkauf anfordern. Die Erlöse werden zur Finanzierung allgemeiner Unternehmenszwecke verwendet, einschließlich Betriebskapital, Betrieb, Übernahmen und Rückkäufe von Wertpapieren.
- Potential to raise up to $575 million in capital through convertible notes offering
- Flexible conversion terms allowing payment in cash, stock, or combination
- Long-term debt maturity until 2031 providing financial flexibility
- Additional debt burden on company's balance sheet
- Potential future dilution for existing shareholders if notes are converted to stock
- Increased interest expense from semi-annual payments
Insights
This
- Semi-annual interest payments
- Conversion rights under certain conditions
- Redemption option after June 2028 at
130% of conversion price - Repurchase option for noteholders in December 2027
The structure allows Core Scientific to strengthen its balance sheet while maintaining operational flexibility. However, the lack of specified interest rate and conversion terms makes it difficult to fully assess the impact on equity holders. The broad use of proceeds for general corporate purposes suggests a focus on operational expansion and potential M&A activity.
The notes will be senior, unsecured obligations of Core Scientific, will accrue interest payable semi-annually in arrears and will mature on June 15, 2031 unless earlier converted, redeemed or repurchased. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Core Scientific will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at Core Scientific’s election.
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Core Scientific’s option at any time, and from time to time, on or after June 22, 2028 and on or before the 20th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Core Scientific’s common stock exceeds
The notes will be subject to repurchase by Core Scientific for cash at the noteholders’ option on December 15, 2027. In addition, if certain corporate events that constitute a “fundamental change” occur, then, subject to a limited exception, noteholders may require Core Scientific to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date or fundamental change repurchase date.
The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.
Core Scientific intends to use the net proceeds from the offering for general corporate purposes, including working capital, operating expenses, capital expenditures, acquisitions of complementary businesses, or repurchases of its securities.
The offer and sale of the notes and any shares of Core Scientific’s common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of Core Scientific’s common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
About Core Scientific
Core Scientific, Inc. is a leader in digital infrastructure for digital assets mining and high-performance computing. We operate dedicated, purpose-built facilities for digital asset mining and are a premier provider of digital infrastructure to our third-party customers. We employ our own large fleet of computers (“miners”) to earn digital assets for our own account, we provide hosting services for large bitcoin mining customers and we are in the process of allocating and converting a significant portion of our nine operational data centers in
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “intend,” “will,” “expect,” “anticipate” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements include, but are not limited to, statements regarding the anticipated terms of the notes being offered, the completion, timing and size of the proposed offering and the intended use of the proceeds. Forward-looking statements represent Core Scientific’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Core Scientific’s common stock and risks relating to Core Scientific’s business, including those described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”). Core Scientific may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offering or the notes or its ability to effectively apply the net proceeds as described above.
These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including those identified in the Company’s reports filed with the SEC, and if any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Accordingly, undue reliance should not be placed upon the forward-looking statements. The Company does not assume any duty or obligation (and does not undertake) to update or supplement any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241202140849/en/
Investors:
ir@corescientific.com
Media:
press@corescientific.com
For Core Scientific
Joseph Sala / Mahmoud Siddig
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
Source: Core Scientific, Inc.
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