VNET Group, Inc. announced the successful closing of its offering of US$430 million in aggregate principal amount of 2.50% convertible senior notes due 2030. The notes are senior, unsecured obligations of the company and will bear interest semi-annually, commencing October 1, 2025. This marks the successful completion of a significant capital raise for VNET.
The notes are initially convertible at a rate of 72.7273 ADSs per US$1,000 principal amount, corresponding to an initial conversion price of approximately US$13.75 per ADS. This conversion price represents a 25.0% premium over the Nasdaq closing price of VNET's ADSs on March 12, 2025. The terms provide flexibility for holders to require repurchase or for the company to redeem under certain conditions.
The net proceeds from this offering are designated for capital investment in wholesale IDC projects, working capital, and general corporate purposes. This capital infusion is critical for VNET to fund its ambitious expansion plans and capitalize on the growing demand for data center services, especially those driven by artificial intelligence workloads in China.
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