GDS upsizes convertible notes offering to $550m, launches equity offerings

** GDS Holdings (HKEX:9698) has priced a US$550 million offering of convertible senior notes due 2032, reflecting an upsize from an initially proposed US$450 million amount and the full exercise of the initial purchasers' option to purchase additional notes. Simultaneously, the company has completed a registered public offering of 6,000,000 ADSs (the "Delta Placement of Borrowed ADSs") at US$24.50 per ADS. The Delta Placement, designed to hedge convertible note investments, involves lending borrowed ADSs to an underwriter affiliate for short selling and derivative transactions. Finally, GDS has completed a separate public offering of 5,980,000 ADSs at the same price, raising approximately US$141.6 million after accounting for underwriting discounts and commissions. GDS plans to use the proceeds from these transactions for general corporate purposes, working capital, and refinancing existing debt, including potential repurchases of its convertible bonds due 2029. The company believes the Delta Placement of Borrowed ADSs will not create dilution. JP Morgan, BofA Securities, Morgan Stanley and UBS Investment Bank acted as joint book-running managers for the equity offerings, with China Galaxy International and Guotai Junan International as financial advisors.