Quick take:
The zero-coupon convertible notes are available to institutional investors and will be due in 2032.
The notes will be unsecured senior obligations of MARA, are not expected to bear regular interest, and the principal amount is not expected to accrete.
Mara plans to use $50 million from the raise to repurchase a portion of its existing 1.00% convertible senior notes due 2026.
Mara Holdings, Inc. (NASDAQ: MARA) has announced plans to raise up to $1 billion in a convertible note offering. The digital energy and infrastructure company said in an SEC filing on Wednesday that it is offering legible institutional investors the opportunity to purchase $850 million in zero-coupon convertible notes, due in 2032.
As part of the offering, MARA plans to give the initial purchasers of the notes the option to buy an additional $150 million, within the first 13 days of closing the offer, bringing the total raise to $1 billion.
The notes will be unsecured senior obligations of MARA, are not expected to bear regular interest, and the principal amount is not expected to accrete. The company said it plans to use $50 million from the raise to repurchase a portion of its existing 1.00% convertible senior notes due 2026.
The remaining net proceeds will be used to acquire additional bitcoin and for general corporate purposes, including working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt and other outstanding obligations.
“Holders of the notes will have the right to require MARA to repurchase for cash all or any portion of their notes on January 4, 2030, if the last reported sale price of MARA’s common stock on the second trading day immediately preceding the repurchase date is less than the conversion price,” the company wrote in the filing.
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The post Mara Holdings Announces $850M Convertible Note Offering to Buy More Bitcoin appeared first on NFTgators .
