Riot Announces Pricing of Offering of 0.75% Convertible Senior Notes
Riot Platforms has announced the pricing of $525 million convertible senior notes due 2030, with an option for additional $75 million. The notes will bear a 0.75% annual interest rate, payable semiannually. The initial conversion rate is 67.2767 shares per $1,000 principal amount, equivalent to $14.86 per share, representing a 32.5% premium over the current stock price.
The notes will be convertible into cash, common stock, or a combination thereof. Riot expects net proceeds of approximately $511.5 million (or $584.6 million if the additional option is exercised), which will be used to acquire bitcoin and for general corporate purposes. The offering is expected to close on December 11, 2024.
Riot Platforms ha annunciato il prezzo di 525 milioni di dollari in obbligazioni senior convertibili con scadenza nel 2030, con un'opzione per ulteriori 75 milioni di dollari. Le obbligazioni avranno un tasso d'interesse annuale del 0,75%, pagabile semestralmente. Il tasso di conversione iniziale è di 67,2767 azioni per ogni 1.000 dollari di valore nominale, equivalente a 14,86 dollari per azione, rappresentando un 32,5% di premio rispetto al prezzo attuale delle azioni.
Le obbligazioni saranno convertibili in contante, azioni ordinarie, o una loro combinazione. Riot prevede ricavi netti di circa 511,5 milioni di dollari (o 584,6 milioni di dollari se l'opzione aggiuntiva viene esercitata), che saranno utilizzati per acquisire bitcoin e per scopi aziendali generali. L'offerta è prevista per chiudere il 11 dicembre 2024.
Riot Platforms ha anunciado el precio de 525 millones de dólares en notas senior convertibles con vencimiento en 2030, con una opción para 75 millones de dólares adicionales. Las notas llevarán una tasa de interés anual del 0,75%, pagadera semestralmente. La tasa de conversión inicial es de 67,2767 acciones por cada 1,000 dólares de monto principal, equivalente a 14,86 dólares por acción, lo que representa una prima del 32,5% sobre el precio actual de la acción.
Las notas serán convertibles en efectivo, acciones comunes o una combinación de ambas. Riot espera ingresos netos de aproximadamente 511,5 millones de dólares (o 584,6 millones de dólares si se ejerce la opción adicional), que se utilizarán para adquirir bitcoin y para fines corporativos generales. Se espera que la oferta cierre el 11 de diciembre de 2024.
Riot Platforms는 2030년 만기가 도래하는 5억 2500만 달러 규모의 전환 사채를 7천 500만 달러의 추가 옵션과 함께 가격을 발표했습니다. 이 사채는 연 0.75%의 이자율로 반기별로 지급됩니다. 초기 전환 비율은 1,000달러의 원금당 67.2767 주식이며, 이는 주당 14.86달러에 해당하며 현재 주가보다 32.5% 프리미엄을 나타냅니다.
이 사채는 현금, 보통주 또는 이들의 조합으로 전환될 수 있습니다. Riot는 약 5억 1150만 달러 (추가 옵션 행사 시 5억 8460만 달러)의 순 수익을 예상하고 있으며, 이 금액은 비트코인을 구매하고 일반 기업 용도로 사용될 예정입니다. 이번 공모는 2024년 12월 11일에 마감될 것으로 예상됩니다.
Riot Platforms a annoncé le prix de 525 millions de dollars en obligations senior convertibles arrivant à échéance en 2030, avec une option supplémentaire de 75 millions de dollars. Les obligations porteront un taux d'intérêt annuel de 0,75%, payable semestriellement. Le taux de conversion initial est de 67,2767 actions pour 1 000 dollars de montant principal, ce qui équivaut à 14,86 dollars par action, représentant une prime de 32,5% par rapport au prix actuel de l'action.
Les obligations seront convertibles en espèces, en actions ordinaires ou en une combinaison des deux. Riot s'attend à des produits nets d'environ 511,5 millions de dollars (ou 584,6 millions de dollars si l'option supplémentaire est exercée), qui seront utilisés pour acquérir des bitcoins et pour des fins corporatives générales. L'offre devrait se clore le 11 décembre 2024.
Riot Platforms hat die Preisgestaltung von 525 Millionen US-Dollar an wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2030 bekannt gegeben, mit einer Option auf zusätzliche 75 Millionen US-Dollar. Die Anleihen haben einen jährlichen Zinssatz von 0,75%, der halbjährlich zahlbar ist. Der anfängliche Umwandlungskurs beträgt 67,2767 Aktien pro 1.000 US-Dollar Nennbetrag, was 14,86 US-Dollar pro Aktie entspricht und einen 32,5% Aufschlag auf den aktuellen Aktienkurs darstellt.
Die Anleihen können in Bargeld, Stammaktien oder eine Kombination daraus umgewandelt werden. Riot erwartet einen Nettoerlös von etwa 511,5 Millionen US-Dollar (oder 584,6 Millionen US-Dollar, wenn die zusätzliche Option ausgeübt wird), der für den Kauf von Bitcoin und für allgemeine Unternehmenszwecke verwendet wird. Die Angebotsschlussdate ist für den 11. Dezember 2024 geplant.
- Successful upsizing of convertible note offering from $500M to $525M
- Low interest rate of 0.75% on the convertible notes
- 32.5% conversion premium indicates confidence in future stock appreciation
- Significant capital raise strengthens balance sheet
- Potential future dilution for existing shareholders upon conversion
- Additional debt obligation on company's balance sheet
- Interest payments will increase cash outflow
Insights
The
The company's plan to use proceeds for Bitcoin acquisition is particularly noteworthy given the current market dynamics. With Bitcoin near all-time highs and the upcoming halving event, this capital raise could significantly strengthen Riot's position in the mining sector. The convertible structure provides flexibility, allowing Riot to manage its debt while giving investors potential upside through conversion rights.
This financing deal comes at a strategic time in the crypto market cycle. The low
The 2030 maturity provides Riot with substantial runway to execute its growth strategy through multiple Bitcoin market cycles. The redemption clause at
The notes will be unsecured, senior obligations of Riot. The notes will bear interest at a rate of
In connection with certain corporate events or if Riot calls any note for redemption, it will, under certain circumstances, be required to increase the conversion rate for holders who elect to convert their notes in connection with such corporate event or notice of redemption.
The notes will be convertible into cash, shares of Riot's common stock, or a combination of cash and shares of Riot's common stock, at Riot's election. Prior to July 15, 2029, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date.
The conversion rate for the notes will initially be 67.2767 shares of Riot's common stock per
Riot estimates that the net proceeds from the sale of the notes will be approximately
Riot intends to use the net proceeds from the offering to acquire additional bitcoin and for general corporate purposes.
The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act. The offer and sale of the notes and the shares of Riot's common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and the notes and any such shares may not be offered or sold in
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the notes, nor shall there be any sale of, the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of any such state or jurisdiction. There can be no assurances that the offering of the notes will be completed as described herein or at all.
About Riot Platforms, Inc.
Riot's (NASDAQ: RIOT) vision is to be the world's leading Bitcoin-driven infrastructure platform.
Our mission is to positively impact the sectors, networks and communities that we touch. We believe that the combination of an innovative spirit and strong community partnership allows the Company to achieve best-in-class execution and create successful outcomes.
Riot is a Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The Company has Bitcoin mining operations in central
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements rely on the safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "anticipates," "believes," "plans," "expects," "intends," "will," "potential," "hope," and similar expressions are intended to identify forward-looking statements. These forward-looking statements may include, but are not limited to, statements about uncertainties related to the satisfaction of closing conditions for the sale of the notes. Detailed information regarding the factors identified by the Company's management which they believe may cause actual results to differ materially from those expressed or implied by such forward-looking statements in this press release may be found in the Company's filings with the
For further information, please contact:
Investor Contact:
Phil McPherson
303-794-2000 ext. 110
IR@Riot.Inc
Media Contact:
Alexis Brock
303-794-2000 ext. 118
PR@Riot.Inc
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SOURCE Riot Platforms, Inc.
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