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GDS Prices Offering of Senior Convertible Notes

CapitalWatch Staff 2018-11-19 14:55 PM
GDS Prices Offering of Senior Convertible Notes

GDS Holdings Ltd. (Nasdaq: GDS) announced the pricing of its offering of $250 million worth of convertible senior notes that will mature on June 1, 2025, unless redeemed, repurchased, or converted earlier.

The company said in statement today that the notes will bear annual interest at a rate of 2 percent, payable on June 1 and December 1 of each year, beginning in December.

The notes may be converted into American depositary shares by the holders, based on an initial conversion rate of 19.3865 of ADSs per $1,000 worth of notes, representing a conversion premium of 32.5 percent above yesterday's close. The stock of GDS closed at $38.93 per share on May 30.

Purchasers would have 30 days to acquire up to an additional $50 million of the notes to cover over-allotments, if any.

The company, which develops and operates data centers in China, said with this offering it is looking to fund development and acquisition of new data centers, repayment of its debts, and other needs.

The shares of GDS dropped 3 percent by noon on Thursday to $37.80 per share.

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(Source: Thomson Reuters Eikon)