Galaxy Digital (GLXY) announced in a press release that its wholly owned subsidiary, Galaxy Digital Holdings LP, has priced a private offering of $1.15 billion aggregate principal amount of 0.50% exchangeable senior notes due May 1, 2031, upsizing the deal from the previously announced $1.0 billion and granting initial purchasers a 13-day option to buy up to an additional $150 million of notes.
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Net proceeds are expected to total approximately $1.127 billion (or $1.274 billion if the option is fully exercised), after deducting the initial purchasers’ discount and before offering expenses. Galaxy plans to deploy the proceeds to support growth across its digital asset trading, asset management, and data center businesses and for general corporate purposes, which may include the repayment of its existing 2026 exchangeable senior notes.
Holders may exchange their notes for GLXY shares at an initial exchange rate of 17.9352 shares per $1,000 principal amount, implying an exchange price of $55.76, a 37.5% premium to the $40.55 closing share price on October 27. Exchanges are permitted in specified windows before February 1, 2031, and at any time thereafter until two trading days before maturity.
The notes are not redeemable before November 6, 2028. From November 6, 2028 until 41 trading days prior to maturity, Galaxy may redeem the notes for cash if its share price trades at or above 130% of the exchange price for a specified period. In the event of a fundamental change, noteholders may require Galaxy to repurchase their notes for cash at 100% of principal plus accrued interest.
The sale is expected to settle on October 30, subject to customary closing conditions, including TSX approval.
Two weeks ago, Galaxy secured a $460 million private placement equity investment at $36 per share.
Read More: Galaxy Digital posts $505 million Q3 profit as crypto trading volumes surge 140%
At time of publication, GLXY is down 8.8% during pre-market hours.
