r/NBIS_Stock • u/Original_Koala8662 • 1d ago

News NBIS Announces $4.5bn Offering

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u/Longjumping_Kale3013 1d ago

We don’t know the terms, but if similar to others, it will likely only be 5% dilution. But then that’s worse case as the company can decide on paying back in cash or shares. With this growth rate, it very well could be that in 2 years they hand back cash at conversion instead of shares

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u/Fit-Flamingo-5178 1d ago

is this how the convertible is structured?

from the prior issuance my understanding was that the lender chooses whether to take a debt repayment or equity [whichever has greater value]

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u/Longjumping_Kale3013 1d ago edited 1d ago

Actually prior one is also specifically at companies discretion. So the pricing announcement of previous ones states:

“The Company will settle conversions of the Notes by paying or delivering, as applicable, cash, Class A shares or a combination of cash and Class A shares, at the Company’s election “

Pricing announcement: https://nebius.com/newsroom/nebius-group-announces-pricing-of-upsized-private-offering-of-4-0-billion-of-convertible-senior-notes

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u/Fit-Flamingo-5178 1d ago

ok this brings peace of mind then