Nebius Group shares trade lower amid $4.5B convertible notes offering

Investing.com -- Nebius Group N.V. shares dropped more than 6% in pre-market trading on Wednesday following the company's announcement of a proposed $4.5 billion convertible senior notes offering.

The AI cloud company plans to offer the notes in two series through a private placement to qualified institutional buyers. The offering includes $2.75 billion in convertible notes due 2030 and $1.75 billion in convertible notes due 2034.

Nebius Group will grant initial purchasers an option to buy up to an additional $375 million of 2030 notes and up to $300 million of 2034 notes within 13 days of issuance.

The company plans to use proceeds from the offering to fund business growth, including data center construction and expansion, development of its AI cloud platform, expansion of its data center presence, and procurement of key components including GPUs. Funds will also support general corporate purposes.

Alongside the notes offering, Nebius Group expects to enter into separate exchange agreements with some holders of its existing 2.00% Convertible Senior Notes due 2029 and 3.00% Convertible Senior Notes due 2031. These exchanges would swap a portion of the existing notes for Class A ordinary shares.

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