Source item
Open original source ↗So while announcing a big splashy $META deal with few details, $NBIS does a $2B equity deal w/$NVDA at a discount, then files $3.75B in converts…?!
(2) Again, these are expensive real estate/equipment leasing deals with pre-tax returns generally at/below the cost of debt capital(6-8%). So expect more hype and then follow-on equity/convert deals from these data center companies.
(3) And interestingly, $NBIS 2027-28 revenue estimates haven’t budged post the $META announcement yesterday. https://t.co/96j3qFd5Ld
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🚨 $NBIS announces proposed private offering of $3.75B of convertible senior notes. - $2.0B due 2031 - $1.75B due 2033 Plus an overallotment option (~$560M extra) We need the deal to close first to see the interest rate and conversion price, the most important valuation-sensitive inputs.
mvcinvesting ↗