China's VNET slides after $430 mln convertible bond deal priced

U.S.-listed shares of VNET Group VNET.O down 7% at $10.23 early Thurs after Chinese data center operator raises more capital than planned

Beijing-based firm announces pricing of $430 mln 5-yr 2.5% convertible bonds (CBs)

Offering size boosted from $400 mln

Initial conversion price of $13.75 per American depositary share represents 25% premium to last close

Co plans to use net offering proceeds to invest in wholesale internet data center projects, working capital and general purposes

Investment giant Blackstone BX.N made a $150 mln investment in VNET (formerly 21Vianet) in 2020 via a private placement, and in 2022 bought $250 mln of its CBs

Blackstone is VNET's 2nd largest shareholder with ~10.4 mln shares, or ~4% stake, as of Dec 31, per LSEG data

VNET has ~263.2 mln shares outstanding for $2.9 bln market cap, through Weds

Goldman Sachs sole bookrunner for the offering

VNET shares ended 2024 at $4.74 and closed a year ago at $1.95