- GDS Holdings (GDS, Financial) successfully closed a $550 million convertible senior notes offering, due 2032, with a 2.25% annual interest rate.
- The notes offer a conversion rate of 30.2343 ADSs per $1,000 principal, at a conversion price of $33.08, a 35% premium over the $24.50 ADS public offering price.
- The net proceeds of $534.9 million are intended for working capital and refinancing existing debt.
GDS Holdings Limited (GDS), a leading developer and operator of high-performance data centers in China, announced the successful closing of its $550 million convertible senior notes offering, due in 2032. This includes the full exercise of an additional $50 million option. The notes were sold to qualified institutional buyers under Rule 144A of the Securities Act and bear an annual interest of 2.25%, payable semiannually.
The initial conversion rate for the notes stands at 30.2343 American Depositary Shares (ADSs) per $1,000 principal, translating to a conversion price of approximately $33.08 per ADS. This conversion rate represents a 35% premium over the ADS public offering price of $24.50. Holders of the notes have the option to convert them into cash, ADSs, or a combination thereof.
GDS Holdings received net proceeds of approximately $534.9 million, which are earmarked for working capital requirements and refinancing existing debt. Part of the proceeds will address the refinancing of the company's convertible bonds due in 2029.
Additionally, GDS completed a Delta Placement of 6 million borrowed ADSs and a Primary ADSs Offering of 5.98 million ADSs. The underwriters exercised their option completely for an additional 780,000 ADSs, demonstrating robust investor interest.
The offering provides GDS with long-term financing, extending through to 2032, and strategic flexibility, as the company strengthens its financial position to support data center development in China's booming cloud computing market.
