Nebius Secures $3.5B Short-Term Citi Facility to Finance GPU Procurement and Data Center Build-Out

AI neocloud provider Nebius Group ($NBIS) closed a $3.5 billion senior secured credit facility arranged by Citigroup to accelerate data center expansion and Nvidia ($NVDA) GPU procurement, leveraging bridge financing ahead of longer-term capital raises.
Financing Terms & Debt Structure:
• Maturity & Pricing: The facility runs for 364 days, carrying an initial interest rate of Term SOFR plus 2.75% per annum, with provisions allowing the margin to step up to 3.50%.
• Capital Base: Proceeds supplement customer prepayments, operating cash flows, and roughly $10 billion in outstanding convertible debt.
• Refinancing Runway: COO Ophir Nave outlined that the short-term facility bridges to anticipated asset-backed financing underpinned by over $40 billion in long-term contracts with investment-grade customers.
Capacity Dynamics & Market Valuation:
• Capacity Demand: Chief Revenue Officer Marc Boroditsky noted that GPU rental rates continue to trend ahead of internal forecasts, stating that upcoming 2027 compute capacity would sell out immediately once operational.
• Price Transparency: Nebius launched a public live spot pricing feed for interruptible GPU compute, exposing real-time depreciation and secondary rental trends to institutional lenders and equity investors.
• Differentiated Leverage: Management distinguished Nebius’s liquidity profile from rival CoreWeave ($CRWV), pointing to lower direct default risk.
• Analyst Sentiment: The consensus among 22 Wall Street analysts tracked by StockAnalysis remains a Buy, with an average price target of $283.60 (~65% upside from recent trading levels).