Nebius Group Stock Slides Following $3.5 Billion Debt Deal

The financing package, arranged by Citi, is designed to fuel the company's aggressive global expansion, specifically targeting the construction of new data centers and the acquisition of high-end graphical processing units. Management stated that the new capital integrates with existing funding streams, including customer prepayments and internal operating cash flows, to sustain their infrastructure build-out.

Terms of the agreement stipulate a 364-day maturity period. The debt carries an initial interest rate based on the Term SOFR plus a 2.75% margin, a figure that is structured to climb to a maximum of 3.50% per annum. While the facility provides immediate liquidity for hardware procurement, the market appears wary of the associated leverage costs.