- GDS Holdings launches three-part simultaneous offering to raise capital.
- Introduction of $450 million in convertible senior notes due 2032.
- Offering includes 5.2 million ADSs with underwriters’ 30-day option for 780,000 additional ADSs.
GDS Holdings Limited (GDS, Financial), a prominent Chinese data center operator, has unveiled a significant financing initiative comprising three interconnected offerings. This comprehensive approach includes a public offering, a private offering, and a delta placement, designed to optimize the company’s financial position.
The primary component of this initiative is the public offering of 5.2 million American Depositary Shares (ADSs), with an additional 30-day option for underwriters to purchase up to 780,000 more ADSs. This offering aims to support GDS's general corporate purposes, including working capital and the refinancing of existing debt.
Additionally, GDS is introducing a private placement of US$450 million in convertible senior notes due in 2032. This offering comes with an option for an additional US$50 million, allowing for heightened flexibility in addressing financial obligations.
In a strategic move to facilitate hedging transactions, GDS also announced the Delta Placement of Borrowed ADSs. This part of the offering is crafted to support derivative transactions for note holders, underscoring the interconnected nature of these financial maneuvers.
These offerings are strategically linked, with the successful closure of one contingent upon the others. This interconnectedness reflects GDS's commitment to a singular, refined financing strategy, intended to strengthen its balance sheet and meet future financial demands, including the potential repurchase of convertible bonds due in 2029.
