Nebius Group N.V. (NASDAQ:NBIS) shares slid in premarket trading on Wednesday to recover later.

The company announced an upsized convertible notes financing, a setup that can weigh on sentiment as traders game out dilution and added leverage.

The pullback is also getting extra pressure as risk appetite cools across equities.

Details

The company priced a $4.0 billion private offering of convertible senior notes, upsized from $3.75 billion.

The offering includes $2.25 billion of 1.25% notes due 2031 and $1.75 billion of 2.625% notes due 2033, with settlement expected on Mar. 20, 2026, subject to customary conditions.

The company also granted the initial purchaser an option to buy up to an additional $600 million of notes.

Nebius estimates net proceeds of about $3.96 billion after discounts, commissions, and offering expenses.

The company said proceeds could rise to about $4.55 billion if the initial purchaser fully exercises its option to buy additional notes.

Management plans to use the proceeds to fund data center construction and build-outs, invest in its full-stack AI cloud, expand its data center footprint, and procure key components including GPUs, alongside general corporate purposes.

Partnership With Nvidia

On ...