21Vianet to Sell an Additional $100 Million In Convertible Notes

The IDC solutions provider hit a four year high today of $15.08 per share.

Anthony Russo
    Feb 25, 2020 11:00 AM  PT
21Vianet to Sell an Additional $100 Million In Convertible Notes
author: Anthony Russo   

21Vianet Group Inc. (Nasdaq: VNET) announced Tuesday that it will issue and sell an additional $100 million worth of convertible notes to a group of investors through private placement.
The Beijing-based internet data center (IDC) company said in a statement today that notes will carry substantively the same terms as the separate agreement it announced last week with a group of investors led by Goldman Sachs Asia Strategic Pte. Ltd. The company said last week that the notes would expire in five years with an annual interest rate of 2%.
After the issuance date, the notes can be converted into the conversion price of $12 per American depositary share at the option of the holder.  
After opening this month trading at $9.29 per share, 21Vianet has achieved notable market appreciation. Today's high of $15.08 per share marked a four-year high for the company.

Established in 2009, 21Vianet, in addition to its IDC solutions, provides cloud and business VPN services to enhance internet reliability, speed and security for its customers. In China, it operates in more than 30 cities and has a customer base of nearly 5,000, according to 21Vianet's official website.
In the three months through September, 21Vianet said its revenue reached $137.2 million, up 13% year-over-year. Net loss has more than doubled to $9.3 million, or 6 cents per ADS, compared with $4.1 million, or 3 cents per ADS, in the same period last year.

21Vianet is set to announce its fourth-quarter and full-year results on March 4 after the markets close.