Core Scientific Announces Proposed Convertible Senior Notes Offering
Core Scientific (NASDAQ: CORZ) announces its intention to offer $350 million in convertible senior notes due 2029, with an option for an additional $52.5 million. The notes will be unsecured obligations, accruing interest semi-annually, and mature on September 1, 2029. Noteholders can convert under certain circumstances, with Core Scientific settling in cash, stock, or a combination.
The company can redeem notes after September 7, 2027, if stock price conditions are met. Proceeds will be used to repay outstanding loans, redeem existing senior secured notes, and for general corporate purposes. The offering is to qualified institutional buyers under Rule 144A of the Securities Act.
Core Scientific (NASDAQ: CORZ) annuncia la sua intenzione di offrire 350 milioni di dollari in note convertibili senior con scadenza nel 2029, con un'opzione per ulteriori 52,5 milioni di dollari. Le note saranno obbligazioni non garantite, con interessi che maturano semestralmente, e scadranno il 1° settembre 2029. I detentori delle note possono convertirle in determinate circostanze, con Core Scientific che liquida in contante, azioni, o una combinazione di entrambi.
L'azienda può riscattare le note dopo il 7 settembre 2027, se vengono soddisfatte le condizioni relative al prezzo delle azioni. I proventi saranno utilizzati per rimborsare prestiti in essere, riscattare note senior garantite esistenti e per scopi aziendali generali. L'offerta è rivolta a compratori istituzionali qualificati ai sensi della Regola 144A del Securities Act.
Core Scientific (NASDAQ: CORZ) anuncia su intención de ofrecer 350 millones de dólares en notas senior convertibles con vencimiento en 2029, con una opción de 52,5 millones de dólares adicionales. Las notas serán obligaciones no garantizadas, acumulando intereses semestralmente, y vencerán el 1 de septiembre de 2029. Los tenedores de notas podrán convertirlas bajo ciertas circunstancias, con Core Scientific liquidando en efectivo, acciones, o una combinación de ambos.
La empresa podrá redimir las notas después del 7 de septiembre de 2027, si se cumplen las condiciones del precio de las acciones. Los ingresos se utilizarán para pagar préstamos pendientes, redimir notas senior garantizadas existentes, y para fines corporativos generales. La oferta está destinada a compradores institucionales calificados bajo la Regla 144A de la Ley de Valores.
Core Scientific (NASDAQ: CORZ)는 2029년에 만기가 도래하는 3억 5천만 달러 상당의 전환 가능 시니어 노트를 제공할 의사를 발표했으며, 추가로 5천 250만 달러를 선택할 수 있는 옵션이 있습니다. 이 노트는 무담보 채무로, 반년마다 이자가 발생하며, 2029년 9월 1일에 만기됩니다. 노트 보유자는 특정 조건에서 전환할 수 있으며, Core Scientific은 현금, 주식 또는 두 가지 조합으로 정산합니다.
회사는 주가 조건이 충족되면 2027년 9월 7일 이후에 노트를 상환할 수 있습니다. 수익금은 미결제 대출 상환, 기존의 시니어 담보 노트 상환, 그리고 일반 기업 용도로 사용될 것입니다. 이번 제안은 증권법 제144A조에 따라 자격을 갖춘 기관 투자자에게 제공됩니다.
Core Scientific (NASDAQ: CORZ) annonce son intention de proposer 350 millions de dollars en obligations senior convertibles venant à échéance en 2029, avec une option pour un montant supplémentaire de 52,5 millions de dollars. Ces obligations seront des engagements non garantis, portant intérêt semestriellement, et arriveront à maturité le 1er septembre 2029. Les détenteurs d'obligations peuvent les convertir dans certaines circonstances, Core Scientific réglant en espèces, en actions ou en une combinaison des deux.
L'entreprise peut racheter les obligations après le 7 septembre 2027, si les conditions du prix des actions sont remplies. Les recettes seront utilisées pour rembourser des prêts en cours, racheter des obligations senior sécurisées existantes et pour des fins générales d'entreprise. L'offre est destinée aux acheteurs institutionnels qualifiés conformément à la règle 144A de la loi sur les valeurs mobilières.
Core Scientific (NASDAQ: CORZ) gibt seine Absicht bekannt, 350 Millionen Dollar in wandelbaren vorrangigen Anleihen mit Fälligkeit 2029 anzubieten, mit einer Option auf zusätzliche 52,5 Millionen Dollar. Die Anleihen werden unbesicherte Verbindlichkeiten sein, die halbjährlich Zinsen auflaufen lassen und am 1. September 2029 fällig sind. Anleiheinhaber haben unter bestimmten Umständen die Möglichkeit zur Umwandlung, wobei Core Scientific in bar, in Aktien oder in einer Kombination aus beidem liquidiert.
Das Unternehmen kann die Anleihen nach dem 7. September 2027 zurückrufen, wenn bestimmte Bedingungen hinsichtlich des Aktienkurses erfüllt sind. Die Einnahmen werden verwendet, um ausstehende Kredite zurückzuzahlen, bestehende vorrangige gesicherte Anleihen einzulösen und für allgemeine Unternehmenszwecke. Das Angebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A des Wertpapiergesetzes.
- Potential to raise up to $402.5 million in capital
- Opportunity to refinance existing debt with potentially more favorable terms
- Flexibility in settlement options for note conversions (cash, stock, or combination)
- Additional funding for general corporate purposes and potential acquisitions
- Increase in long-term debt obligations
- Potential dilution of existing shareholders if notes are converted to stock
- Additional interest expenses may impact future profitability
Insights
Core Scientific's proposed
However, investors should note that this new debt could dilute existing shareholders if converted to equity. The redemption option after September 2027 at
Overall, this offering could improve Core Scientific's financial flexibility, but the impact on the stock will depend on the final terms, particularly the conversion price and interest rate.
As a leader in bitcoin mining infrastructure, Core Scientific's financial moves are closely tied to the cryptocurrency market. This convertible note offering could provide the company with additional capital to expand its mining operations or upgrade equipment, which is important in the competitive and rapidly evolving crypto mining industry.
The flexibility to settle conversions in cash, stock, or a combination is strategically important. It allows Core Scientific to manage its balance sheet and dilution risk based on market conditions and the company's financial position at the time of conversion.
Investors should consider how this additional capital might be deployed to enhance Core Scientific's technological edge in bitcoin mining and high-performance computing. The company's ability to stay competitive in terms of hash rate and energy efficiency will be critical for long-term success in this volatile sector.
The notes will be senior, unsecured obligations of Core Scientific, will accrue interest payable semi-annually in arrears and will mature on September 1, 2029, 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 September 7, 2027 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
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.
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 to repay in full the outstanding loans under its credit and guaranty agreement entered into on January 23, 2024 and redeem all of its outstanding senior secured notes due 2028. Core Scientific intends to use the remaining net proceeds from the offering for general corporate purposes, including working capital, operating expenses, capital expenditures, acquisitions of complementary businesses, or other 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 is a leader in digital infrastructure for bitcoin mining and high-performance computing. We operate dedicated, purpose-built facilities for digital asset mining and are a premier provider of digital infrastructure, software solutions and services to our third-party customers. We employ our own large fleet of computers (“miners”) to earn bitcoin for our own account and provide hosting services for large bitcoin mining and high-performance computing customers at our eight operational data centers in
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “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, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813641609/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.
FAQ
What is the total amount Core Scientific aims to raise with the convertible notes offering?
When will the Core Scientific (CORZ) convertible notes mature?
How does Core Scientific plan to use the proceeds from the convertible notes offering?
What options does Core Scientific (CORZ) have for settling note conversions?
