Chinese data centre group GDS Holdings has launched an up to $631 million convertible bond and capital raising, according to a regulatory filing.
The company has increased a seven-year convertible bond from $450 million to $500 million with a coupon range of between 2% and 2.5%, a term sheet reviewed by Reuters showed.
There is a $50 million greenshoe option that could increase the size of the convertible bond, the term sheet said.
GDS, which is listed on the Nasdaq and in Hong Kong, is also selling 5.2 million American Depository Shares (ADS) to raise up to $131 million.
The shares are being offered at $24.25 to $25.25 each, the term sheet said.
GDS’s Nasdaq shares closed down 4.8% on Tuesday.
The company said it plans to use the money raised for working capital and to pay down existing debt.
Reuters
