MARA Moves to Amend $600M Long Ridge Notes Ahead of Power Asset Acquisition
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Key Takeaways
- MARA is offering $2.50 per $1,000 in principal to bondholders to waive Change of Control provisions triggered by its acquisition of Long Ridge Energy.
- The solicitation requires consent from a majority of the $600 million in outstanding 8.750% Senior Secured Notes due 2032.
MARA (NASDAQ: MARA) Holdings is seeking bondholder approval to avoid triggering a mandatory debt buyback tied to its proposed acquisition of the Long Ridge natural gas-powered data center and energy assets, according to a company statement released Thursday.
The Bitcoin miner said its wholly owned subsidiary, MARA USA Corporation, launched a consent solicitation to amend the indenture governing Long Ridge Energy LLC’s outstanding $600 million of 8.75% senior secured notes due 2032.
The move follows MARA’s April 29 agreement to acquire 100% of Long Ridge Energy & Power LLC from Ohio River Partners Holdco LLC and Ohio River Partners Finance LLC. The deal would make Long Ridge an indirect wholly owned subsidiary of MARA once completed.
Under the existing bond terms, the acquisition would constitute a “change of control,” requiring Long Ridge Energy LLC to offer to repurchase all outstanding notes at 101% of principal plus accrued interest. MARA is now asking bondholders to waive that requirement and amend related provisions in the indenture.
