IREN (NASDAQ: IREN) said Monday that it has closed a $3.65 billion investment-grade GPU financing facility to support delivery of its AI cloud contract with Microsoft. The company said the deal is the highest publicly rated investment-grade GPU financing and the first in the U.S. private placement market.<\/p>\n
\u201cThe financing comprises a $2.10bn U.S. private placement at a fixed rate equivalent to SOFR plus 2.13% and a $1.55bn delayed draw term loan at a floating rate of SOFR plus 2.25%, for which IREN has entered into interest rate hedges,\u201d the press release states. \u201cIREN achieved a blended cost of debt of 6.00% notwithstanding higher base rates since the initial DDTL underwriting commitment\u201d<\/p>\n
Dan Roberts, co-founder and co-CEO of IREN, said the financing terms reflect the strength of the company\u2019s customer contracts and its ownership of the data center infrastructure where the GPUs operate.<\/p>\n
Get the daily recap of Blockspace, directly to your inbox. All things compute and power, 5 days per week.<\/a><\/p>\n \u201cSecuring investment-grade financing on these terms reflects both the quality of our customer contracts and the fact that we own the data center infrastructure these GPUs run in,\u201d Roberts said in a post on X<\/a>. \u201cThat combination broadens our access to institutional capital and lowers our cost of capital as we scale.\u201d<\/p>\n What the financing funds <\/p>\n The $3.65 billion facility backs IREN\u2019s previously announced $9.7 billion managed services AI cloud contract, under which IREN provides Microsoft access to NVIDIA GPUs over a five-year term across four data centers in Childress, Texas.<\/p>\n