Chindata Group Announces Pricing of $300 million Senior Notes due 2026

Rhea-AI Summary

Chindata Group Holdings Limited (Nasdaq: CD) has announced the pricing of $300 million in senior notes due 2026, bearing an interest rate of 10.5% per annum. The offering successfully attracted over $980 million in orders from high-quality investors across APAC and EMEA, reflecting strong market support despite economic uncertainties. The proceeds will be used for expanding data center investments in China and abroad, along with working capital and R&D initiatives. The notes are rated BBB- by Fitch, marking a significant milestone as the first offshore bond offering by a Chinese ADR issuer since August 2021.

Positive

• Successfully priced $300 million in senior notes with a 10.5% interest rate.
• Attracted over $980 million in orders, indicating strong investor interest.
• Proceeds will enhance investment in data centers and R&D, driving business growth.

Negative

• None.

BEIJING, Feb. 16, 2023 (GLOBE NEWSWIRE) -- Chindata Group Holdings Limited (“Chindata Group” or the “Company”) (Nasdaq: CD), a leading carrier-neutral hyperscale data center solution provider in Asia-Pacific emerging markets, announced that it has priced its U.S.$300,000,000 in aggregate principal amount of senior notes due 2026 (the “Notes”). The Notes were assigned BBB- by Fitch. It will bear interest at a coupon rate of 10.500% per annum and will be issued at a price of 99.061% of the aggregate principal amount. The offering of Notes attracted unprecedented strong support from high quality investors in APAC and EMEA, with the final order books reaching over US$980million. Morgan Stanley & Co. International plc and Credit Suisse (Hong Kong) Limited acted as Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers, DBS Bank Ltd acted as Joint Bookrunner and Joint Lead Manager.

Chindata Group intends to use the net proceeds from the sale of the Notes for investment in data centers in the PRC and overseas, supplementing working capital and investment in research and development.

The issuance of the Notes is subject to customary closing conditions.

The Notes were offered outside the United States in offshore transactions in accordance with Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), and have not been, and will not be, registered under the Securities Act. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of securities referred to in this announcement, in any jurisdiction, including the United States, in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Nick Wang, Chief Financial Officer of the Company, commented, "We are very pleased to have completed the pricing of the Notes. The business expansion of the Company in China and Southeast Asia will be further supported with the newly establishment of this meaningful financing channel. We believe the Notes have achieved several milestones as well. Our rating has been the highest credit ratings achieved by Chinese IDC player, in comparable range to some major global peers, and the Notes is the first offshore bond offering from Chinese ADR issuers since August 2021. Despite fragile market sentiment around macro outlook, we continued to attract significant investor interest during 2-day telephonic roadshow and have received unprecedented strong support from high quality international institutional investors, including global asset managers and pension fund. Chindata remains highly committed to the mission of efficiently converting electric power to computing power, and we will continue to build a business beneficial to all our stakeholders."

About Chindata Group

Chindata Group is a leading carrier-neutral hyperscale data center solution provider in Asia-Pacific emerging markets and a first mover in building next-generation hyperscale data centers in China, India and Southeast Asia markets, focusing on the whole life cycle of facility planning, investment, design, construction and operation of ecosystem infrastructure in the IT industry. Chindata Group provides its clients with business solutions in major countries and regions in Asia-Pacific emerging markets, including asset-heavy ecosystem chain services such as industrial bases, data centers, network and IT value-added services.

Chindata Group operates two sub-brands: "Chindata" and "Bridge Data Centres". Chindata operates hyper-density IT cluster infrastructure in the Greater Beijing Area, the Yangtze River Delta Area and the Greater Bay Area, the three key economic areas in China, and has become the engine of the regional digital economies. Bridge Data Centres, with its top international development and operation talents in the industry, owns fast deployable data center clusters in Malaysia and India, and seeks business opportunities in other Asia-Pacific emerging markets.

Safe Harbor for Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Chindata Group may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Chindata Group’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Chindata Group’s goals and strategies; its future business development, financial condition and results of operations; the expected growth and competition of the data center and IT market; its ability to generate sufficient capital or obtain additional capital to meet its future capital needs; its ability to maintain competitive advantages; its ability to keep and strengthen its relationships with major clients and attract new clients; its ability to locate and secure suitable sites for additional data centers on commercially acceptable terms; government policies and regulations relating to Chindata Group’s business or industry; general economic and business conditions in the regions where Chindata Group operates and globally and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Chindata Group’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Chindata Group undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For Enquiries, Please Contact:

Chindata IR Team
ir@chindatagroup.com

Mr. Dongning Wang
dongning.wang@chindatagroup.com

FAQ

What is the purpose of Chindata Group's $300 million senior notes?

Chindata Group intends to use the proceeds from the senior notes for investments in data centers in China and overseas, as well as for working capital and research and development.

What is the interest rate on Chindata Group's new senior notes?

The senior notes bear an interest rate of 10.5% per annum.

What rating did Fitch assign to Chindata Group's senior notes?

Fitch assigned a BBB- rating to Chindata Group's senior notes.

How much demand did Chindata Group's senior notes attract?

The offering of senior notes attracted over $980 million in orders from high-quality investors.

When do Chindata Group's senior notes mature?

Chindata Group's senior notes are due in 2026.