By Wendy Van Sickle
Columbus, Ohio, Dec. 9 – Galaxy Digital Holdings Ltd. said Galaxy Digital Holdings LP closed its offering of $500 million of 3% five-year exchangeable senior notes due 2026, according to a news release.
The company’s board of directors has approved a proposed corporate reorganization whereby Galaxy Digital plans to consummate a series of related transactions in connection with its re-domiciliation to the United States. Subject to the satisfaction of some conditions and during certain periods, holders of the notes may opt to exchange their notes prior to the reorganization, for ordinary shares of Galaxy Digital Holdings Ltd. and following the reorganization, for shares of class A common stock of Galaxy Digital Inc., a newly formed Delaware holding company, or in each case, at the issuer's election, cash or a combination thereof.
The exchange rate will initially be 7,498.221 ordinary shares per $250,000 principal amount for an exchange price of $33.3412 per share.
The issuer may redeem the notes starting Dec. 15, 2024. Holders may require the company to repurchase their notes for cash following a fundamental change.
Proceeds will be used to accelerate growth initiatives across its business lines and for general corporate purposes.
Galaxy Digital is a diversified financial services and investment management company in the digital asset, cryptocurrency and blockchain technology sector with headquarters in New York.
| Issuer: | Galaxy Digital Holdings LP
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| Amount: | $500 million
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| Issue: | Exchangeable senior notes
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| Maturity: | Dec. 15, 2026
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| Coupon: | 3%
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| Exchange price: | $33.3412 per share
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| Exchange rate: | 7,498.221 ordinary shares per $250,000 principal amount
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| Call option: | Starting Dec. 15, 2024 at par if shares exceed 130% of the exchange price for 20 out of 30 consecutive trading days
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| Settlement date: | Dec. 9
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| Distribution: | Rule 144A
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| Stock symbol: | TSX: GLXY
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| Stock price: | $19.13 at close on Dec. 9
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