WhiteFiber Inc

WhiteFiber plans a private placement of senior convertible notes initially for 250 million USD, raised to 270 million USD, with a greenshoe option of up to 40 million USD, bringing the total potential volume to 310 million USD. The notes feature a conversion rate of 29.5530 shares per 1,000 USD nominal, which could cause significant share dilution. At the same time, an exchange of existing convertible bonds due 2031 is underway, complicating the capital structure and heavily weighing on the stock in pre-market trading; the share price subsequently fell sharply. » More on de.investing.com

WhiteFiber placed senior convertible bonds in a private placement totaling $270.0 million (previously planned $250 million) with a 5.00% coupon and maturity on 1 September 2032; the offering can be increased by up to $40.0 million within 13 days. The initial conversion rate equals approximately 29.5530 common shares per $1,000 par value (conversion price ~ $33.84, a 25% premium to the last close). Closing is expected on 21 August 2026; WhiteFiber expects around $259.8 million in net proceeds, of which about $118.5 million will be used for cash consideration in a parallel bond exchange; the remainder is intended mainly for expanding data centers, GPU servers and potential acquisitions. In parallel, existing convertibles (2031, 4.5% coupon) with a nominal value of $198.15 million were exchanged for around $118.5 million in cash and about 6.3 million common shares. » More on de.investing.com

WhiteFiber shares fell 21.4% in after-hours trading following the announcement of a private placement of $250 million in senior convertible notes (due 2032) plus an option for an additional $37.5 million. Investors fear capital dilution, especially since the offering is linked to an exchange of the existing 4.5% convertible notes (due 2031), further complicating the capital structure. Additional pressure came from a simultaneous $60 million real estate acquisition to convert into data‑center campuses (initially 60 MW, expandable to around 200 MW). The share drop is therefore company‑specific and not due to broader market movements. » More on de.investing.com