By Colin Kellaher


American depositary shares of GDS Holdings Ltd. fell more than 10% Wednesday after the developer and operator of data centers said it planned a private placement of $580 million of 4.50% convertible senior notes due 2030.

The Shanghai company said the notes, which it is selling to various private-equity funds and institutional investors, including a sovereign wealth fund, have an initial conversion price of $24.50 per ADS, a roughly 2.6% premium to Tuesday's closing price of $23.89.

GDS said the conversion rate is equal to about 40.8 ADSs per $1,000 principal amount of notes.

The company said it plans to use proceeds from the placement for the development and acquisition of new data centers, along with general corporate purposes and working-capital needs.

GDS ADSs were recently changing hands at $21.06, down nearly 12%.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

01-11-23 1009ET