Aug 19 (Reuters) - AI cloud provider Nebius Group said on Wednesday it plans to raise $4.5 billion through an offering of private convertible notes, as it seeks to ramp up investments in data centers and computing capacity.
The Amsterdam-headquartered company plans to issue notes worth $2.75 billion maturing in 2030, and notes worth $1.75 billion maturing in 2034. It may also sell an additional $375 million of the 2030 notes and $300 million of the 2034 notes if purchasers exercise their options,
it said.
• Proceeds from the offering will be used to expand data center capacity, invest in the company's full-stack AI cloud platform and acquire GPUs and other key components needed to support growth.
• Nebius shares were down more than 7% in premarket trading.
• Alongside the debt offering, the company expects to enter privately negotiated agreements with certain holders of its existing convertible notes due 2029 and 2031 to exchange part of the notes for Class A shares.
• The completion of the offering remains subject to market conditions, the company said.
• Nebius ended June with $8.04 billion in cash and cash equivalents, but spent $5.66 billion on property, equipment and intangible assets in the second quarter, reflecting heavy investment in data centers and computing capacity.
(Reporting by Rashika Singh in Bengaluru; Editing by Jonathan Ananda)
