Galaxy Digital to issue $500 million convertible senior notes

The crypto-trading bank Galaxy Digital объявил about the issuance of convertible senior notes worth $500 million due December 15, 2026.

According to the press release, the offering of notes with a 3% coupon will be conducted via a private placement with participation from several buyers, including entities affiliated with Arca, NZ Funds, Senator Investment Group, and XN.

The offering is expected to close in early December 2021 after approval by the Toronto Stock Exchange.

The proceeds will be used to accelerate growth initiatives across its business lines and for general corporate purposes.

The company also said that the board of directors approved the proposed corporate reorganization in connection with the move from Canada to the United States.

During the reorganization, Galaxy Digital Holdings’ common shares will automatically convert into Class A common stock of the newly registered Delaware holding company Galaxy Digital Inc.

During certain periods, bondholders will be able to exchange them for the company’s shares, both those currently outstanding and those issued after the reorganization.

The notes are available only to qualified institutional buyers and are general unsecured obligations of the issuer.

Earlier in November, the British mining company Argo Blockchain анонсировала the US bond issue. The firm intends to offer notes with a coupon rate of 8.75% for $57.5 million.

In June, Galaxy Digital provided Argo with a loan of £14 million (~$19.4 million) secured by Bitcoin.

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