VNET Group, Inc. (VNET), a carrier- and cloud-neutral Internet data center services provider, on Thursday announced the launch of a proposed offering of $400 million aggregate principal amount of its Convertible Senior Notes, due 2030.
The company plans to use the proceeds from the notes offering for investments in wholesale IDC projects, as well as for working capital and general business needs.
The company will settle conversions by providing cash ADSs each representing six Class A shares with a par value of $0.00001 per share, or a mix of both, based on its choice and certain restrictions.
Before October 1, 2029, Noteholders can convert their Notes only if certain conditions are met. After that date, they can convert them anytime until two trading days before maturity.
The notes will mature on April 1, 2030, unless they are repurchased, redeemed, or converted earlier as per their terms.
Noteholders can ask the company to repurchase all or part of their notes for cash on April 3, 2028, or if certain major changes occur. The repurchase price will be 100% of the note's principal amount plus any unpaid interest up to that date.
Starting April 10, 2028, the company can also choose to redeem all or part of the notes for cash under certain conditions, paying 100% of the principal amount plus any unpaid interest up to the redemption date.
In the pre-market trading, VNET is 8.27% lesser at $10.09 on the Nasdaq.
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