Why GDS Shares Are Trading Lower Premarket Today

  • GDS Holdings Limited GDS looked to raise $580 million via private 4.50% convertible senior notes offering due 2030.
  • The conversion price of $24.50 implied a premium of 2.6% to the January 10 closing of $23.89. It indicated a premium of 16.7% to the volume-weighted average price of GDS ADSs traded on NASDAQ for the 25 trading days immediately preceding the signing date.
  • The notes will be convertible into ADSs at the option of the holders.
  • The leading developer and operator of high-performance data centers in China looked to utilize the offering proceeds for developing and acquiring new data centers, general corporate purposes, and working capital needs.
  • GDS held $5.1 billion in long-term debt and $1.28 billion in cash and equivalents as of September 30.
  • Price Action: GDS shares traded lower by 8.66% at $21.82 in the premarket on the last check Wednesday.
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