Nebius to raise $3.75 billion through convertible bonds. The stock is down 5%

Arkady Volozh's Nebius Group, a cloud provider, announced that it plans a private placement of $3.75 billion in convertible senior notes. The company's shares were down more than 5% on the premarket on March 17, following Monday's rally, when capitalization jumped nearly 15% thanks to an agreement with Meta.

According to Nebius in a press release available to Oninvest, the offering will consist of two series: $2 billion in bonds maturing in 2031 and $1.75 billion in securities maturing in 2033. They will be offered to qualified institutional investors.

In addition, the company plans to grant the initial purchaser an option for additional bonds placement: up to $300 mln for the issue maturing in 2031 and up to $262.5 mln for the issue maturing in 2033. The option can be exercised within 13 days from the date of initial issue.

Nebius plans to use the raised funds for business development: construction and expansion of data centers, development of cloud services for artificial intelligence, purchase of equipment, including graphics processors, as well as for other corporate needs.

This article was AI-translated and verified by a human editor