Loan & DebtJun 1, 2026, 07:09 AM
IREN Secures $3.65B Investment-Grade GPU Financing for Microsoft AI Cloud
AI Summary
IREN Limited announced it has closed a $3.65 billion investment-grade GPU financing facility to support its AI Cloud contract with Microsoft. The facility, comprising a $2.10 billion U.S. private placement and a $1.55 billion delayed draw term loan, has a blended cost of debt of 6.00%. It funds approximately 96% of the $5.81 billion GPU capital expenditure for the Microsoft contract at an average financing cost of 3.31%, strengthening IREN's capital structure for its expansion to 480MW of AI Cloud capacity by end of 2026.
Key Highlights
- Closed $3.65 billion investment-grade GPU financing facility.
- Blended cost of debt for the facility is 6.00%.
- Includes $2.10 billion U.S. private placement at SOFR+2.13% fixed rate.
- Includes $1.55 billion delayed draw term loan at SOFR+2.25% floating rate.
- Funds 96% of $5.81 billion GPU capex for Microsoft contract.
- All-in financing cost, including customer prepayments, is 3.31%.
- Received Fitch A and DBRS A(low) investment-grade ratings.
- Goldman Sachs and J.P. Morgan served as joint lead managers.
Price Impact
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