Loan & DebtJun 1, 2026, 07:12 AM
IREN Secures $3.6B Financing for GPU Infrastructure
AI Summary
IREN Ltd's wholly owned subsidiary, IE US Hardware 3 LLC, has secured approximately $3.6 billion in financing agreements. This includes a $1.5 billion delayed draw term loan facility and $2.1 billion in 5.96% senior notes due December 31, 2031. The financing is intended to partially fund the acquisition of GPU infrastructure and other costs to support Hardware 3's agreement with Microsoft Corporation to provide dedicated GPU services. The obligations are secured by Hardware 3's assets, including the acquired GPUs and cash flows from the Microsoft contract, with limited guarantees from IREN Ltd.
Key Highlights
- IREN's subsidiary secured $3.6 billion in aggregate financing.
- Financing includes a $1.5 billion delayed draw term loan (DDTL) and $2.1 billion in 5.96% senior notes due 2031.
- DDTL bears interest at term SOFR plus 2.25%, with a 0.40% commitment fee on undrawn portions.
- Funds will partially finance GPU infrastructure acquisition for a Microsoft contract.
- Obligations are secured by Hardware 3's assets, including GPUs and Microsoft contract cash flows.
- Parent company provides limited guarantees for certain obligations.
- Financing agreements include a debt service coverage ratio covenant of at least 1.05:1.00.
Price Impact
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