Keel Infrastructure Corp. priced its upsized convertible senior notes offering at $400 million. This total marks an increase from the company's initial $350 million target. The notes carry a 1.250% annual interest rate and are due in 2032. Initial purchasers maintain an option to buy up to $58 million in additional notes. The offering is expected to close on June 9, 2026.
Keel shares dropped nearly 8% in overnight trading following the announcement. Retail investor activity surged 98% on Stocktwits as traders debated the impact of the debt issuance.
The company will use the proceeds to fund capped call transactions to hedge against potential shareholder dilution. Remaining funds will support general corporate purposes and the expansion of data center projects.