TeraWulf To Offer $500 Mln Of Convertible Senior Notes

(RTTNews) - TeraWulf Inc. (WULF), a low-carbon digital infrastructure company, Wednesday proposed a private offering of $500 million of unsecured Convertible Senior Notes due 2032.

The net proceeds from the notes will be used to fund a portion of the construction cost of a data center campus in Abernathy, Texas and for general corporate purposes, the company said in a statement.

The notes will not bear regular interest, and will mature on May 1, 2032. Prior to February 1, 2032, they are to be converted contingent on certain conditions, after which the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

TeraWulf will also grant the initial purchasers of the Convertible Notes an option to purchase up to an additional $75 million of the notes within a 13-day period beginning on and including the date on which they were first issued.

The notes will be converted to cash or a combination of cash and shares of the company.

In premarket activity, TeraWulf shares are trading at $15.14, down 5.01% on the Nasdaq.