10th Jul 2026 09:25
Fermi Inc - Texas-based real estate investment trust, focused on data centres - Prices USD375 million in convertible senior notes due 2031 with a 5.00% coupon. The buyers of the notes, which Fermi calls qualified institutional buyers under US law, also will be given the option to buy up to an additional USD56.3 million in notes. The initial conversion price of the notes into shares is set at USD9.52, a premium to Fermi's market price. Fermi also notes that the effective conversion price will be USD14.64, as a result of options agreements it has entered with financial institutions that cover the shares underlying the convertible notes. This will limit the dilution to existing shareholders from the convertible note issue, Fermi says. The company will use the proceeds from the convertible note offer to pay the cost of these "capped call" option contracts and for "general corporate purposes". Read More