Nebius Group N.V. has successfully priced a $4 billion convertible senior notes offering, increasing the deal size from an initial $3.75 billion due to strong institutional demand. The offering, which includes $2.25 billion in 1.250% notes due 2031 and $1.75 billion in 2.625% notes due 2033, is aimed at funding the expansion of AI infrastructure, including data centers and GPU procurement. The notes, convertible into Nebius' Class A shares, are set to settle on March 20, with net proceeds potentially reaching $4.55 billion if an additional allotment option is exercised.
Despite the upsized offering, Nebius shares fell by 9% to 12% following the announcement, as investors expressed concerns over potential dilution from the convertible securities. The capital raise follows Nebius' strategic partnerships with Nvidia and Meta Platforms, underscoring its commitment to scaling AI infrastructure amid growing competition in the sector.
Nebius Raises $4 Billion via Convertible Notes for AI Expansion
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