CleanSpark prices offering of $550M convertible debt

CleanSpark ( NASDAQ: CLSK ) has announced the pricing of its offering of $550M aggregate principal amount of Convertible Senior Notes due 2030. The convertible notes will be sold to the initial purchasers for resale in a private offering. The notes will not bear regular interest, and the principal amount of the convertible notes will not accrete. CleanSpark has granted the initial purchasers a 13-day option to purchase up to an additional $100M of the notes. It will mature on June 15, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. The conversion rate will initially be 67.5858 shares of common stock per $1,000 principal amount of convertible notes, equivalent to an initial conversion price of approximately $14.80 a share. The company expects net proceeds from the offering will be approximately $535.9M or ~$633.6M if the initial purchasers exercise in full their option to purchase additional notes. Approximately $76.5M of the net proceeds will be used to pay the cost of the capped call transactions, ~$145M will be used to repurchase shares of its common stock from investors in the convertible notes, and the remaining net proceeds will be used for the repayment in full of amounts outstanding under company's line of credit with Coinbase, capital expenditures, acquisitions and general corporate purposes. The offering is expected to close on Dec. 17, 2024. CLSK shares dipped 3.33% premarket on Friday.