By Wendy Van Sickle
Columbus, Ohio, Nov. 15 – Marathon Digital Holdings, Inc. priced an upsized $650 million of 1% convertible senior notes with a five-year tenor an an initial conversion premium of 37.5%, according to a press release.
The notes were talked for an initial conversion premium of 35% and at an issue size of $500 million.
The Rule 144A offering will carry a 13-day $94.5 million greenshoe, increased from $75 million.
Conversions will be settled with cash, shares of common stock or a combination of cash and shares, at the issuer’s election.
The notes are callable starting Dec. 6, 2024 until 21 days before the maturity date, subject to a 130% hurdle.
Jefferies LLC is the bookrunner for the deal.
Marathon intends to use the proceeds for general corporate purposes, including the acquisition of Bitcoin or Bitcoin mining machines.
Marathon Digital is a digital asset company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets. Headquarters are in Las Vegas.
| Issuer: | Marathon Digital Holdings, Inc.
|
| Issue: | Convertible senior notes
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| Amount: | $650 million
|
| Greenshoe: | $97.5 million
|
| Maturity date: | Dec. 1, 2026
|
| Coupon: | 1%
|
| Conversion rate: | 13.1277
|
| Conversion price: | $76.17
|
| Conversion premium: | 37.5%
|
| Closing price: | $55.40 on Nov. 15
|
| Bookrunner: | Jefferies LLC
|
| Call: | Starting Dec. 6, 2024 until 21 days before the maturity date, subject to a 130% hurdle
|
| Pricing date: | Nov. 15
|
| Issue date: | Nov. 18
|
| Distribution: | Rule 144A
|
| Talk: | Conversion premium of 35% and issue size of $500 million
|
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