Keel Infrastructure (KEEL.TO, KEEL) was down 8.8% in after-hours Nasdaq trade after the company on Thursday said it plans to offer US$350 million in convertible senior notes due 2032.
The notes will be fully and unconditionally guaranteed on a senior unsecured basis by Bitfarms, Keel's wholly owned subsidiary. The company also expects to grant initial purchasers an option to buy up to an additional $58 million of notes within 13 days of issuance, according to the statement.
The company did not offering pricing or conversion details for the notes.
The notes will be senior unsecured obligations of Keel and will pay interest semi-annually on Jan. 15 and July 15, beginning Jan. 15, 2027. Unless earlier repurchased, redeemed, or converted, the notes will mature on Jan. 15, 2032, the company added.
Keel also said that, in connection with the convertible notes offering, it expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers, their affiliates, and/or other financial institutions.
Part of the proceeds will be used to fund capped call transactions, with the remainder allocated to general corporate purposes, the company added.
The company's shares were last seen down US$0.52 to US$5.41 after hours. They closed down C$0.36 to C$8.24 on the Toronto Stock Exchange.