IREN Secures $3.6 Billion Financing Package for Microsoft GPU Contract

IREN Limited announced that its wholly owned subsidiary, IE US Hardware 3 LLC, has entered into financing agreements for approximately $3.6 billion. The funds will be used to acquire GPU infrastructure and support costs related to its previously disclosed agreement to provide dedicated GPU services to Microsoft Corporation.

Key Details

• Total Financing: Approximately $3.6 billion, comprised of a ~$1.5 billion delayed draw term loan facility (DDTL) and $2.1 billion in 5.96% senior notes.
• Purpose: To fund the acquisition of GPUs for a service contract with Microsoft at IREN's data center facilities in Childress, Texas.
• Key Terms: The DDTL bears interest at SOFR + 2.25%, while the senior notes have a fixed rate of 5.96% per annum. Both facilities mature on December 31, 2031.
• Security: The obligations are secured by all assets of the subsidiary, including the GPUs acquired for the Microsoft contract and the cash flows generated from it.