WhiteFiber Plans $250 Million Notes Offering for AI Data Centers

WhiteFiber plans to offer $250.0 million in convertible senior notes due 2032 through a private placement to qualified institutional buyers, the company said in a press release. The company also plans to give initial purchasers an option to buy up to an additional $37.5 million of the notes.

The notes will be general senior unsecured obligations and will pay interest semiannually. On conversion, WhiteFiber may settle in cash, ordinary shares, or a mix of both. The interest rate, initial conversion rate, and other terms will be set when the offering is priced.

WhiteFiber intends to use part of the proceeds to pay cash consideration in planned note exchange transactions involving some of its 4.500% convertible senior notes due 2031. The remaining proceeds are intended mainly for data center expansion, including property leases or purchases, construction, energy service agreements, GPU servers for its cloud business, potential acquisitions, partnerships, joint ventures, working capital, and general corporate purposes.

The company said it expects to need additional project financing to complete the data center projects covered by the planned use of proceeds. The offering and any related note exchanges are contingent on their respective closing conditions.