Core Scientific Prices Upsized $550 Million Convertible Senior Notes Offering
Core Scientific (NASDAQ: CORZ) has priced an upsized offering of $550 million convertible senior notes due 2031, increased from the previously announced $500 million. The zero-interest notes will mature on June 15, 2031, with an initial conversion rate of 44.4587 shares per $1,000 principal amount, representing a conversion price of approximately $22.49 per share. The company granted initial purchasers an option to buy an additional $75 million in notes. The net proceeds, estimated at $535.6 million (or $608.7 million if the option is exercised), will be used for general corporate purposes including working capital, operating expenses, and capital expenditures.
Core Scientific (NASDAQ: CORZ) ha annunciato un'offerta aumentata di 550 milioni di dollari di obbligazioni convertibili senior con scadenza nel 2031, rispetto ai 500 milioni precedentemente comunicati. Le obbligazioni senza interesse scadranno il 15 giugno 2031, con un tasso di conversione iniziale di 44,4587 azioni per un importo nominale di 1.000 dollari, il che rappresenta un prezzo di conversione di circa 22,49 dollari per azione. La società ha concesso ai compratori iniziali un'opzione per acquistare ulteriori 75 milioni di dollari in obbligazioni. I proventi netti, stimati in 535,6 milioni di dollari (o 608,7 milioni di dollari se l'opzione viene esercitata), saranno utilizzati per scopi aziendali generali, inclusi capitale circolante, spese operative e investimenti in capitale.
Core Scientific (NASDAQ: CORZ) ha fijado una oferta ampliada de 550 millones de dólares en notas senior convertibles con vencimiento en 2031, aumentando desde los 500 millones previamente anunciados. Las notas sin interés vencerán el 15 de junio de 2031, con una tasa de conversión inicial de 44.4587 acciones por cada 1.000 dólares de valor nominal, lo que representa un precio de conversión de aproximadamente 22.49 dólares por acción. La compañía otorgó a los compradores iniciales una opción para comprar 75 millones de dólares adicionales en notas. Los ingresos netos, estimados en 535.6 millones de dólares (o 608.7 millones de dólares si se ejerce la opción), se utilizarán para fines corporativos generales, incluidos el capital de trabajo, los gastos operativos y las inversiones de capital.
Core Scientific (NASDAQ: CORZ)는 2031년 만기인 5억 5천만 달러의 전환형 고급 채권 공모를 확대하여 가격을 책정했다고 발표하였으며, 이는 이전에 발표된 5억 달러에서 증가한 것입니다. 이 무이자 채권은 2031년 6월 15일에 만기가 되며, 1,000달러의 원금당 44.4587주로 초기 전환률이 설정되어 있으며, 이는 주당 약 22.49달러의 전환 가격을 나타냅니다. 회사는 초기 구매자에게 추가로 7천5백만 달러의 채권을 구매할 수 있는 옵션을 부여했습니다. 순수익은 5억 3천5백 60만 달러(옵션이 행사될 경우 6억 8천7백만 달러로 추정됨)로, 운영 자본, 운영 비용 및 자본 지출을 포함한 일반 기업 목적에 사용될 것입니다.
Core Scientific (NASDAQ: CORZ) a fixé une offre augmentée de 550 millions de dollars en obligations convertibles senior arrivant à échéance en 2031, augmentant par rapport aux 500 millions précédemment annoncés. Les obligations sans intérêt arriveront à échéance le 15 juin 2031, avec un taux de conversion initial de 44,4587 actions pour 1 000 dollars de montant nominal, ce qui représente un prix de conversion d'environ 22,49 dollars par action. La société a accordé aux acheteurs initiaux une option d'achat d'obligations supplémentaires de 75 millions de dollars. Les produits nets, estimés à 535,6 millions de dollars (ou 608,7 millions de dollars si l'option est exercée), seront utilisés à des fins d'entreprise générales, y compris le fonds de roulement, les frais d'exploitation et les dépenses d'investissement.
Core Scientific (NASDAQ: CORZ) hat ein erhöhtes Angebot von 550 Millionen Dollar an wandelbaren Schuldverschreibungen mit Fälligkeit im Jahr 2031 festgesetzt, was eine Steigerung von zuvor angekündigten 500 Millionen Dollar darstellt. Die zinslosen Schuldverschreibungen werden am 15. Juni 2031 fällig und haben einen anfänglichen Umtauschkurs von 44,4587 Aktien pro 1.000 Dollar Nennbetrag, was einem Umtauschpreis von etwa 22,49 Dollar pro Aktie entspricht. Das Unternehmen gewährte den ursprünglichen Käufern eine Option zum Kauf von zusätzlichen 75 Millionen Dollar an Schuldverschreibungen. Der Nettoprozeß, der auf 535,6 Millionen Dollar (oder 608,7 Millionen Dollar, falls die Option ausgeübt wird) geschätzt wird, wird für allgemeine Unternehmenszwecke verwendet, einschließlich Betriebskapital, Betriebskosten und Investitionsausgaben.
- Successful upsizing of convertible note offering from $500M to $550M
- Zero-interest rate on the convertible notes, reducing debt service costs
- 42.5% conversion premium over current stock price
- Significant capital raise strengthening the company's financial position
- Potential future dilution for existing shareholders upon note conversion
- Additional debt obligation of $550M added to balance sheet
- Mandatory cash repurchase option in 2027 could strain future liquidity
Insights
Core Scientific's
The conversion features and redemption options provide flexibility for both the company and noteholders. The
The structure balances growth capital needs with shareholder dilution concerns, as conversion is conditional on specific triggers before March 2031. The successful placement demonstrates institutional confidence in Core Scientific's business model and growth trajectory in the bitcoin mining sector.
The notes will be senior, unsecured obligations of Core Scientific and will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on June 15, 2031, unless earlier repurchased, redeemed or converted. Before March 17, 2031, noteholders will have the right to convert their notes only upon the occurrence of certain events. From and after March 17, 2031, noteholders may convert their notes at any time at their election until the close of business on the scheduled trading day immediately before the maturity date. 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 initial conversion rate is 44.4587 shares of common stock per
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 a “fundamental change” (as defined in the indenture for the notes) occurs, 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 special and additional interest, if any, to, but excluding, the applicable repurchase date or fundamental change repurchase date.
Core Scientific estimates that the net proceeds from the offering will be approximately
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, 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.
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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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