Marathon Digital Shares Drop 8% After Senior Note Exchange
By Chris Wack
Marathon Digital Holdings shares were down 8% to $11.41 after the company entered into privately negotiated exchange agreements with certain holders of its 1.00% convertible senior notes due 2026.
The stock hit its 52-week high of $19.88 on July 14, and is down 15% in the past 12 months.
The company plans to exchange its 2026 notes, valued at $417 million, for 26.2 million in newly issued shares.
Marathon won't receive any cash proceeds from the issuance of the shares, and the final number of shares that Marathon will issue has yet to be determined. Marathon also will pay investors in cash for accrued and unpaid interest on the exchanged notes.
After completing the exchange, about $331 million worth of the notes will remain outstanding.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
September 08, 2023 10:48 ET (14:48 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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