WhiteFiber has closed an upsized $310 million private placement of 5% convertible senior notes due 2032, providing additional capital for data center expansion as the AI infrastructure company targets more than 100 MW of additional capacity across its development pipeline in 2027.
The offering includes the full exercise of an additional $40 million option granted to the initial purchasers.
The notes carry an initial conversion price of approximately $33.84 per share, representing a roughly 25% premium to WhiteFiber’s August 18 closing price.
WhiteFiber received approximately $298.5 million of net proceeds.
About $118.5 million was used for concurrent transactions exchanging $198.15 million of existing 4.5% convertible notes due 2031 for cash and approximately 6.3 million WhiteFiber shares.
Those transactions reduced the outstanding principal amount of the existing notes to approximately $31.85 million.
WhiteFiber expects to deploy the remaining proceeds primarily toward data center growth.
Potential uses include acquiring or leasing additional properties, constructing facilities, securing energy services and purchasing equipment including GPU servers for its cloud business.
Capital may also be deployed toward acquisitions, partnerships, joint ventures and general corporate needs.
WhiteFiber is completing the first phase of NC-1 while preparing additional colocation capacity.
The company expects the financing, together with its proposed project-level financing for NC-1, to support site preparation and orders for long-lead equipment needed for its 2027 buildout.
WhiteFiber is targeting execution of long-term leases for that planned capacity during the fourth quarter of 2026.
KEY QUOTE:
“Completing this transaction now materially enhances our liquidity and provides greater capital certainty as we complete the first phase of NC-1 and prepare for the next phase of WhiteFiber’s colocation growth.”
Sam Tabar, CEO Of WhiteFiber
