GDS Holdings talks $250 million seven-year convertibles to yield 1.75% to 2.25%, up 30% to 35%

By Abigail W. Adams

Portland, Me., May 29 – GDS Holdings Ltd. plans to price $250 million of seven-year convertible notes after the market close on Wednesday with price talk for a coupon of 1.75% to 2.25% and an initial conversion premium of 30% to 35%, according to a market source.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets Corp. are joint bookrunners for the Rule 144A and Regulation S deal, which carries a greenshoe of $50 million.

The notes are non-callable. There is an investor put on June 1, 2023 and holders may require the company to repurchase the notes upon a fundamental change.

Proceeds will be used for the development or acquisition of new data centers, repayment of outstanding indebtedness and for general corporate purposes.

GDS Holdings is a Shanghai-based developer and operator of data centers in China.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.