.png)
1 month ago
Bitcoin miner MARA Holdings Inc (NASDAQ:MARA) recently completed its $850 million offering of 0% convertible senior notes due 2031. This happened soon after it completed a $1 billion offering of 0% convertible senior notes due 2030 in November.
What Happened: The sale of the notes was completed in two days as the initial purchasers flocked and exercised the purchase of the initial and the additional principal by Dec. 4, after the offering was announced on Monday, Dec. 2.
The notes were offered to qualified institutional buyers with 0% interest and no accretion of principal because of its conversion rate of 28.9159 shares of MARA's common stock per $1,000 principal amount of notes, equaling an initial conversion price of approximately $34.5830 apiece.
MARA's conversion price represents a premium of approximately 40% over the Dec. 2 mid-day share price of $24.70 apiece.
Additionally, the conversion price of $1 billion notes that were offered to the investors in November represented a premium of approximately 42.5% over the Nov. 18 mid-day share price of $18.1848.
A convertible note is a hybrid instrument that can be exchanged for equity in the company at a later date. These convertible notes, even though with 0% interest, ...
