Keel Infrastructure Raises $458M Convertible Notes, Funds AI Data Centers
KEEL•Keel Infrastructure closed a $458 million convertible senior notes offering due 2032, including full exercise of a $58 million option after institutional demand lifted the deal size from $350 million. Proceeds will advance leasing of its Panther Creek (350–500 MW), Sharon (110 MW), and Moses Lake (18 MW) AI data center projects.
1. Convertible Senior Notes Offering
Keel Infrastructure closed $458 million of 1.25% convertible senior notes due 2032 on June 10, with initial purchasers exercising the full $58 million option to cover the expanded deal from its original $350 million size. The notes carry a conversion price of approximately $7.41 per share, reflecting a 25% premium to pre-deal levels.
2. Use of Proceeds
The company will use the proceeds to fund capped call transactions, secure long-lead equipment deposits, collateralize letters of credit, and support general corporate purposes tied to its AI data center buildout. This funding ensures liquidity to advance leasing phases at three key development sites.
3. Data Center Pipeline
Keel’s development pipeline totals 2.2 GW of grid-connected capacity, including an 18 MW pilot campus at Moses Lake, a flagship 350–500 MW Panther Creek campus in Pennsylvania, and a 110 MW Sharon site. Each facility is designed to support high-performance computing and AI workloads.
4. Dilution Mitigation
To limit shareholder dilution if the notes convert into equity, Keel purchased capped call transactions that offset share issuance up to an $11.86 per-share price, providing a built-in hedge against equity dilution.
