Highlights
Highest publicly rated investment-grade GPU financing announced
$3.65bn facility at blended cost of debt of 6.00%:1
$2.10bn U.S. private placement at a fixed rate equivalent to SOFR+2.13%2
$1.55bn delayed draw term loan (DDTL) at a floating rate of SOFR+2.25%
Funds 96% of $5.81bn GPU capex for Microsoft contract at all-in financing cost of 3.31%, including customer prepayments3
Anchored by Microsoft's offtake, the transaction received Fitch and DBRS ratings of A and A(low) respectively, representing the highest publicly rated investment-grade GPU financing announced and the first GPU financing in the U.S. private placement market.
The financing comprises a $2.10bn U.S. private placement at a fixed rate equivalent to SOFR+2.13%2 and a $1.55bn delayed draw term loan at a floating rate of SOFR+2.25%, for which IREN has entered into interest rate hedges. IREN achieved a blended cost of debt of 6.00% notwithstanding higher base rates since the initial DDTL underwriting commitment.1
The facility is secured against the GPUs and associated contracted cash flows. By combining a U.S. private placement with a DDTL and securing an investment grade rating, IREN was able to access a broader range of investors on attractive terms.
Together with customer prepayments, the facility funds $5.59bn of the $5.81bn (approximately 96%) of GPU capex under the Microsoft contract at an average financing cost of 3.31%3 and strengthens ...
