AI infrastructure firm Nebius slips after $1 bln convertible bond sale

Shares of Nebius Group N.V. NBIS.O down 5.3% premarket to $34.80 after capital raise

Dutch AI infrastructure firm says entered agreements to sell privately $1 bln of convertible bonds (CBs) in two tranches

$500 mln CBs due 2029 have 2% annual coupon, while $500 mln CBs due 2031 have 3% coupon

Initial conversion price of $51.45 represents 40% premium to stock's last close of $36.75

Co intends to use net proceeds to fund growth, including acquisition of additional compute power, expansion of data center footprint, among other purposes

With ~238.1 mln shares outstanding, NBIS has ~$8.8 bln market cap, per LSEG data

Goldman Sachs acted as sole placement agent for CBs issuance

Last July, a Russian consortium of buyers finalized a $5.4 bln deal to acquire Yandex's Russia-based assets, and Yandex renamed itself Nebius Group a month after the split

Through Fri close, NBIS stock up 33% YTD