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VNET Announces the Closing of Its Offering of US$430 Million Convertible Senior Notes due 2030

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VNET Group (Nasdaq: VNET) has successfully closed its offering of US$430 million convertible senior notes due 2030. The notes carry a 2.50% annual interest rate, payable semi-annually starting October 1, 2025.

The notes are convertible at an initial rate of 72.7273 ADSs per US$1,000 principal amount, equivalent to US$13.75 per ADS - a 25% premium above the March 12, 2025 closing price of US$11.00. Holders can require VNET to repurchase their notes on April 3, 2028, or during fundamental changes at 100% of principal plus accrued interest.

The proceeds will fund wholesale IDC projects, working capital, and general corporate purposes. The notes were offered offshore to non-U.S. persons under Regulation S and are not registered under the Securities Act.

VNET Group (Nasdaq: VNET) ha concluso con successo la sua offerta di 430 milioni di dollari USA di obbligazioni convertibili senior con scadenza nel 2030. Le obbligazioni hanno un tasso di interesse annuale del 2,50%, pagabile semestralmente a partire dal 1 ottobre 2025.

Le obbligazioni sono convertibili a un tasso iniziale di 72,7273 ADS per ogni 1.000 dollari USA di valore nominale, equivalente a 13,75 dollari USA per ADS - un premio del 25% rispetto al prezzo di chiusura del 12 marzo 2025 di 11,00 dollari USA. I detentori possono richiedere a VNET di riacquistare le loro obbligazioni il 3 aprile 2028, o durante cambiamenti fondamentali al 100% del valore nominale più gli interessi maturati.

I proventi finanzieranno progetti IDC all'ingrosso, capitale circolante e scopi aziendali generali. Le obbligazioni sono state offerte all'estero a persone non statunitensi ai sensi della Regolamentazione S e non sono registrate ai sensi del Securities Act.

VNET Group (Nasdaq: VNET) ha cerrado con éxito su oferta de 430 millones de dólares estadounidenses en notas senior convertibles con vencimiento en 2030. Las notas tienen una tasa de interés anual del 2,50%, pagadera semestralmente a partir del 1 de octubre de 2025.

Las notas son convertibles a una tasa inicial de 72,7273 ADS por cada 1.000 dólares estadounidenses de monto principal, equivalente a 13,75 dólares estadounidenses por ADS - un 25% de prima sobre el precio de cierre del 12 de marzo de 2025 de 11,00 dólares estadounidenses. Los tenedores pueden solicitar a VNET que recompre sus notas el 3 de abril de 2028, o durante cambios fundamentales al 100% del principal más intereses acumulados.

Los ingresos financiarán proyectos IDC al por mayor, capital de trabajo y fines corporativos generales. Las notas se ofrecieron en el extranjero a personas no estadounidenses bajo la Regulación S y no están registradas bajo la Ley de Valores.

VNET Group (Nasdaq: VNET)는 2030년 만기 전환형 선순위 채권 4억 3천만 달러의 발행을 성공적으로 마무리했습니다. 이 채권은 연 2.50%의 이자율을 가지며, 2025년 10월 1일부터 반기마다 지급됩니다.

채권은 초기 비율로 1,000달러의 원금당 72.7273 ADS로 전환 가능하며, 이는 ADS당 13.75달러에 해당하며, 2025년 3월 12일 종가인 11.00달러보다 25%의 프리미엄이 붙습니다. 보유자는 2028년 4월 3일에 VNET에게 자신의 채권을 100%의 원금과 발생한 이자를 포함하여 재매입할 것을 요구할 수 있습니다.

수익금은 도매 IDC 프로젝트, 운영 자본 및 일반 기업 목적을 위한 자금으로 사용됩니다. 이 채권은 비미국인에게 Regulation S에 따라 해외에서 제공되었으며, Securities Act에 따라 등록되지 않았습니다.

VNET Group (Nasdaq: VNET) a réussi à clôturer son offre de 430 millions de dollars US d'obligations senior convertibles arrivant à échéance en 2030. Les obligations portent un taux d'intérêt annuel de 2,50%, payable semestriellement à partir du 1er octobre 2025.

Les obligations sont convertibles à un taux initial de 72,7273 ADS pour 1.000 dollars US de montant principal, ce qui équivaut à 13,75 dollars US par ADS - une prime de 25 % par rapport au prix de clôture du 12 mars 2025 de 11,00 dollars US. Les détenteurs peuvent demander à VNET de racheter leurs obligations le 3 avril 2028, ou lors de changements fondamentaux, à 100 % du principal plus les intérêts courus.

Les produits serviront à financer des projets IDC en gros, du fonds de roulement et des fins d'entreprise générales. Les obligations ont été offertes à l'étranger à des personnes non américaines en vertu de la réglementation S et ne sont pas enregistrées en vertu de la loi sur les valeurs mobilières.

VNET Group (Nasdaq: VNET) hat erfolgreich sein Angebot von 430 Millionen US-Dollar an wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2030 abgeschlossen. Die Anleihen haben einen Jahreszinssatz von 2,50%, der halbjährlich ab dem 1. Oktober 2025 zahlbar ist.

Die Anleihen sind zu einem anfänglichen Satz von 72,7273 ADS pro 1.000 US-Dollar Nennbetrag wandelbar, was 13,75 US-Dollar pro ADS entspricht - ein Aufschlag von 25% über dem Schlusskurs vom 12. März 2025 von 11,00 US-Dollar. Inhaber können von VNET verlangen, dass ihre Anleihen am 3. April 2028 oder bei grundlegenden Änderungen zum 100%igen Nennwert zuzüglich aufgelaufener Zinsen zurückgekauft werden.

Die Erlöse werden zur Finanzierung von Großhandels-IDC-Projekten, Betriebskapital und allgemeinen Unternehmenszwecken verwendet. Die Anleihen wurden im Ausland an nicht-US-Personen gemäß Regulation S angeboten und sind nicht nach dem Securities Act registriert.

Positive
  • Successful raising of US$430 million in new capital
  • 25% conversion premium indicates confidence in share price appreciation
  • Long maturity period until 2030 provides financial flexibility
  • Funds secured for IDC project expansion
Negative
  • 2.50% interest expense adds to company's debt service costs
  • Potential dilution for existing shareholders upon conversion
  • Additional debt burden on balance sheet

Insights

VNET's successful closing of a $430 million convertible notes offering significantly strengthens its financial position in the competitive data center market. The 2.50% interest rate is relatively favorable in the current environment, providing cost-effective capital while the convertible structure balances immediate funding needs with potential future equity considerations.

The notes' $13.75 conversion price—representing a 25% premium over recent trading—indicates investor confidence in VNET's growth trajectory. This premium effectively prices in expected appreciation while protecting against immediate dilution, further supported by the 40-day initial non-conversion period.

Strategically, this financing provides VNET substantial capital for IDC expansion without immediately diluting existing shareholders. The 2028 investor put option creates a defined evaluation timeline while giving the company nearly three years of operational flexibility before potential redemption obligations arise.

For investors, this transaction represents a well-structured capital raise that enhances VNET's competitive positioning in China's growing data center market. The financing strengthens the company's ability to fund capital-intensive infrastructure projects essential for capturing market share in the rapidly expanding cloud services sector, where scale and capacity are critical competitive advantages.

This $430 million capital infusion positions VNET to significantly expand its wholesale IDC infrastructure at a critical time in China's digital transformation. The data center sector remains among the most capital-intensive technology segments, with successful operators requiring substantial ongoing investment to maintain competitive positioning.

VNET's focus on wholesale IDC projects suggests a strategic emphasis on serving hyperscale cloud providers and large enterprises that typically require substantial dedicated capacity. This approach aligns with broader industry trends where scale, energy efficiency, and strategic locations drive competitive advantage.

The timing is particularly relevant as Chinese enterprises continue accelerating digital transformation initiatives requiring robust infrastructure. As a carrier-neutral and cloud-neutral provider, VNET can leverage this funding to expand capacity while maintaining the flexibility to serve diverse customer requirements across multiple clouds and connectivity options.

While the competitive landscape remains intense with both domestic and international players vying for market share, this financing provides VNET the capital resources to execute on expansion plans. Success will ultimately depend on efficient capital deployment, securing high-value anchor tenants, and maintaining operational excellence—but this funding removes a significant potential constraint on growth that often challenges data center operators.

BEIJING, March 18, 2025 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier-neutral and cloud-neutral internet data center services provider in China, today announced the closing of its offering (the "Notes Offering") of US$430 million in aggregate principal amount of 2.50% convertible senior notes due 2030 (the "Notes").

The Notes bear interest at a rate of 2.50% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2025. The Notes are senior, unsecured obligations of the Company. The Notes will mature on April 1, 2030 unless earlier repurchased, redeemed or converted in accordance with the terms of the Notes prior to such date.

Holders of the Notes have the right to require the Company to repurchase all or part of their Notes in cash on April 3, 2028 or, subject to certain conditions, in the event of certain fundamental changes (as defined in the indenture of the Notes), at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the relevant repurchase date. In addition, on or after April 10, 2028, the Company may redeem all or part of the Notes for cash subject to certain conditions, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the relevant optional redemption date. Furthermore, the Company may redeem all but not part of the Notes in the event of certain changes in the tax laws, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the related redemption date.

Holders of the Notes may not convert the Notes at any time on or prior to the 40th day following the last date of the original issuance of the Notes (such date, the "Compliance Period End Date"). After the Compliance Period End Date and prior to the close of business on the business day immediately preceding October 1, 2029, the Notes will be convertible only if certain conditions are met. From and after October 1, 2029, holders of the Notes may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, the American Depositary Shares, each representing six Class A ordinary shares, with par value of US$0.00001 per share, of the Company (the "ADSs") or a combination of cash and ADSs, at the Company's election, subject to certain restrictions.

The Notes will initially be convertible at a conversion rate of 72.7273 ADSs per US$1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately US$13.75 per ADS and represents a conversion premium of approximately 25.0% above the Nasdaq closing price of the Company's ADSs on March 12, 2025, which was US$11.00 per ADS. The initial conversion rate is subject to adjustment upon the occurrence of certain events.

The Notes are offered in offshore transactions outside the United States to certain non-U.S. persons in compliance with Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act"). The Notes, the ADSs deliverable upon conversion of the Notes (if any) and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or any other applicable securities laws, and may not be sold or otherwise transferred except under an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other applicable securities laws. No public offering of the Notes, the ADSs deliverable upon conversion of the Notes (if any) and the Class A ordinary shares represented thereby is being made into the United States.

The Company intends to use the net proceeds from the Notes Offering for the capital investment in wholesale IDC projects, working capital and general corporate purposes.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

About VNET

VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,500 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports 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 statements about VNET'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: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contact:

Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com 

Cision View original content:https://www.prnewswire.com/news-releases/vnet-announces-the-closing-of-its-offering-of-us430-million-convertible-senior-notes-due-2030-302404327.html

SOURCE VNET Group, Inc.

FAQ

What are the key terms of VNET's US$430M convertible notes offering?

2.50% interest rate, due 2030, convertible at 72.7273 ADSs per US$1,000 (US$13.75/ADS), with semi-annual payments starting October 1, 2025.

When can holders convert VNET's 2030 convertible notes?

After the 40-day Compliance Period End Date and before October 1, 2029 under certain conditions, and freely thereafter until maturity.

What is the repurchase option for VNET's convertible notes?

Holders can request repurchase on April 3, 2028, at 100% of principal plus accrued interest.

How will VNET use the proceeds from the US$430M convertible notes?

Proceeds will fund wholesale IDC projects, working capital, and general corporate purposes.

What is the conversion premium of VNET's 2030 convertible notes?

25% premium above March 12, 2025 closing price of US$11.00, resulting in US$13.75 conversion price per ADS.
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