Nebius Group Raises $5.75B in Convertible Debt Despite Stock Rally
Nebius Group (NASDAQ:NBIS) rose 4% on Tuesday after announcing the completion of a $5.75 billion convertible debt offering, exceeding its initial target and signaling strong institutional demand for its AI infrastructure expansion plans. The raise included two tranches—$3.45B in 0.50% notes due 2030 and $2.3B in 4.50% notes due 2034—with underwriters exercising their full over-allotment options, adding an additional $750 million to the raise. The offering is expected to fund data-center construction, GPU procurement, AI cloud development, and general corporate purposes. Nebius also exchanged $800 million in existing convertible notes for 15.8 million Class A shares, which could lead to increased market selling pressure if holders choose to offload the equity. The company reported a backlog of $37.5 billion from long-term contracts with three major customers representing over 10% each of quarterly revenue.
