VNET Group, Inc. announced the pricing of its offering of US$430 million in aggregate principal amount of 2.50% convertible senior notes due 2030. The notes will bear interest semi-annually, beginning on October 1, 2025, and are senior, unsecured obligations of the company. This financing initiative is crucial for supporting VNET's capital-intensive growth strategy.
The notes will initially be convertible at a rate of 72.7273 ADSs per US$1,000 principal amount, which is equivalent to an initial conversion price of approximately US$13.75 per ADS. This represents a conversion premium of approximately 25.0% above the Nasdaq closing price of VNET's ADSs on March 12, 2025, which was US$11.00 per ADS. The conversion premium indicates market confidence in the company's future stock performance.
VNET intends to use the net proceeds from this offering primarily for capital investment in wholesale IDC projects, as well as for working capital and general corporate purposes. This capital infusion will enable the company to expand its data center capacity and meet the increasing demand for high-performance computing, particularly from the booming artificial intelligence sector in China.
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