Key insights
- Iren Ltd's subsidiary secured $3.6 billion in financing for GPU infrastructure to support a Microsoft contract in Texas. This significant capital infusion for data center expansion, particularly in AI-related hardware, signals strong demand and investment in the sector. While specific to Iren, it reflects broader trends in cloud computing and AI infrastructure build-out, potentially boosting sentiment for related technology and semiconductor companies.
Iren Ltd (NASDAQ:IREN) announced Monday that its wholly owned subsidiary, IE US Hardware 3 LLC, has entered into financing agreements totaling approximately $3.6 billion. The agreements, dated May 29, 2026, are intended to partially fund the acquisition of GPU infrastructure and related costs to support a previously disclosed contract with Microsoft Corporation to provide dedicated GPU services at data center facilities in Childress, Texas.
The financing package consists of a $1.5 billion delayed draw term loan facility arranged by Goldman Sachs Bank USA and JPMorgan Chase Bank, N.A., and $2.1 billion in 5.96% senior notes due December 31, 2031. Borrowings under the loan facility and issuances of the notes will be made in tranches and are available until May 29, 2027, with the maturity date set for December 31, 2031, or earlier if all service fees under the Microsoft contract are paid in full.
The term loan bears interest at a rate equal to term SOFR plus a 2.25% margin, and includes a 0.40% annual commitment fee on undrawn amounts during the availability period. The senior notes carry a fixed interest rate of 5.96% per annum. Principal amounts under both the loan and the notes are subject to scheduled amortization.
As part of the agreements, Iren Ltd has provided limited parent guarantees related to certain obligations, including performance by IE US Development Holdings 3 Inc. under a managed services agreement, and covering any shortfall in payment obligations if Microsoft does not accept or terminates a tranche of GPU services, subject to certain conditions.
The obligations of IE US Hardware 3 LLC are secured by its assets, including the acquired GPUs, a pledge of its equity interests, and cash flows generated from the Microsoft contract. The financing agreements include customary covenants and events of default, as well as requirements for debt service coverage ratios and prepayment provisions.
IE US Hardware 3 LLC has also entered into hedge agreements to manage interest rate and power cost exposures, initially guaranteed by Iren Ltd until transition to a secured hedge structure.
The information in this article is based on a statement filed by Iren Ltd with the Securities and Exchange Commission.
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