AI cloud company Nebius expands convertible bond offering to $5 billion for data center expansion
On August 19 Nebius announced pricing of upsized $5.0B convertible notes in two series at 0.5% 2030 and 4.5% 2034.
On August 19, AI cloud company Nebius Group (NASDAQ: NBIS) announced pricing of an upsized $5.0 billion convertible senior notes offering, up from the previously announced $4.5 billion. Proceeds will be used primarily to build data centers and develop AI cloud services. The offering is in two tranches: $3.0 billion of 0.50% notes due 2030, and $2.0 billion of 4.50% notes due 2034.
Nebius also granted the initial purchasers an option to purchase up to an additional $450 million of 2030 notes and $300 million of 2034 notes within 13 days of issuance, taking the maximum deal size to about $5.75 billion. The company also entered into exchange agreements with certain holders of its existing 2029 and 2031 convertible notes, exchanging a combined $800 million of existing notes for approximately 15.8 million Class A ordinary shares.
Issuance and exchange settlements are expected on August 24. Nebius said the financing is a key step in executing its AI cloud expansion strategy, with proceeds funding data center construction, GPU and compute procurement, and cloud platform development to become a compute infrastructure provider for the AI economy.