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Nebius raises $5.75B debt to expand AI data center footprint
The Nasdaq-listed firm will also swap $800M of earlier debt for about 16 million new shares, as its convertible debt totals $12B.
Amsterdam-based AI cloud provider Nebius announced the closing of a $5.75B convertible bond offering to fund expansion of its digital infrastructure footprint, including new data center construction and build-out.
Alongside the debt raise, Nebius agreed to a debt-to-equity swap with some holders of earlier bond offerings, exchanging $800M of previous debt for roughly 16 million new shares.
Nebius said it plans to use most of the proceeds for data center expansion across Europe and North America, including expenditures tied to procuring graphics processing units and other related infrastructure.
HousingWire reports that the deal drew a negative market reaction, with Nebius shares falling by as much as 6% on concerns about dilution from the new share issuance and the size of the nearly $6B debt raise. Reuters also noted the firm’s convertible debt totals $12B, after prior financing including $775M in debt in July and a $4B bond offering announced earlier this year.