According to TechFlow, Bitcoin mining company Core Scientific announced plans to privately issue convertible senior notes due in 2029 totaling US$350 million to qualified institutional buyers.
The Company may also grant the initial purchasers an option to purchase up to an additional $52.5 million in principal amount of the Notes within 13 days of the first issuance date of the Notes. The Notes will be senior unsecured obligations of Core Scientific, pay interest semi-annually and mature on September 1, 2029, unless earlier converted, redeemed or repurchased. Holders of the Notes have the right to convert the Notes into cash, common stock or a combination of both under certain circumstances.
The Company plans to use the proceeds to repay in full the outstanding loans under the credit and security agreement signed on January 23, 2024, redeem all senior secured notes due 2028, and the remaining funds will be used for general corporate purposes, including working capital, operating expenses, capital expenditures and acquisition of complementary businesses.