GDS Holdings announces $500m convertible notes offering

GDS Holdings (HKEX: 9698) today announced the pricing of a US$500 million convertible senior notes offering due in 2032, along with concurrent offerings of American Depositary Shares (ADSs). The notes, bearing a 2.25% annual interest rate, are convertible at an initial rate equivalent to approximately US$33.08 per ADS, representing a 35% premium over the Delta Offering Price of US$24.50. The company estimates net proceeds of approximately US$486.1 million, or US$534.9 million if initial purchasers fully exercise their option for additional notes. GDS plans to use these proceeds for working capital and refinancing existing debt. Additionally, GDS priced an offering of 5,200,000 primary ADSs at US$24.50 each and a Delta Placement of Borrowed ADSs totaling 6,000,000 ADSs at the same price. The primary ADSs offering is expected to net approximately US$123.0 million, earmarked for general corporate purposes.