Greenidge Generation Holdings Prices Senior Notes (Baby Bonds)

Greenidge Generation Holdings Inc (GREE) has priced a new issue of senior notes.

The issue comes to market with a coupon of 8.50%. They are selling 2 million shares (bonds) with an over allotment of 208,000 shares available.

NOTE–Greenidge is a power generator/crypto miner with limited operating history.

This is another B Riley deal–meaning it has bonus payments for early redemptions (see chart below).

The issue should trade on the NASDAQ in a week or so under ticker GREEL.

The pricing term sheet can be found here.

The original registration statement can be found here.

9 thoughts on “Greenidge Generation Holdings Prices Senior Notes (Baby Bonds)”

  1. This company is currently listed on NMS because of a reverse merger with Support.com earlier in the year. Interesting a EX-power company now a bitcoin miner cobbled together with the technology support company supporting Comcast and others. I believe the reverse merger allowed SPRT executives to cash out and GREE to be listed.

  2. Egan Jones gives them a B rating??? I didn’t know they went that low, this must be a C/edge of D if at S&P. JMHO, of course.

  3. SI-A seems to be a better choice for a “reasonable” yield involved with crypto currency. Not only has the common been on a tear but the preferred has been steadily going up to par. For a while you could buy in the low 24s. Now it is the higher 24s. So about 5.4%..

  4. I now tend to look the other direction when seeing the names Egan-Jones and B Riley… this despite that I hold small amounts of 3 pfd/bbond note Riley issues. This might be pure prejudice, but there it is.

  5. Is there a misplaced zero or two in the prospectus where it says, “On September 15, 2021, we entered into a common stock purchase agreement (the “Purchase Agreement”) with an affiliate of B. Riley (the “Investor”) pursuant to which we have the right to “put”, or sell, to the Investor up to $500,000,000 of shares of class A common stock, subject to certain limitations and conditions set forth in the Purchase Agreement, from time to time during the term of the Purchase Agreement.” $500 MILLION put possible to RILY for a company with a current stockholder equity of $96 million??? I sure hope that Stock Purchase Agreement has some serious limitations and conditions built in.. That’s one helluva commitment on the surface… There’s seems to be no limit to the risks RILY’s willing to commit to.. Am I reading this the wrong way???

    1. 2wr–will have to check that out. 1 of the reasons I am tending to stay away from B Riley for the most part–lots of deals only a speculator could like.

      1. I did see where RILY is limited to 5% ownership, thus limiting the size that can be put to them, so right now, that limits the amount of the commitment…… Also mkt cap according to yahoo is 847 mil, so that makes the 500mil number maybe not so unbelievable but still, it sure seems oversized………..

  6. After seeing what’s happening to other second rate issues lately I don’t think I’ll bother researching any more new ones I’ve never heard of. One big loser can wipe out 5 or 10 winners. Now is not the time.

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