VNET Group, Inc. ( VNET ) shares are trading lower on Thursday after the company announced the pricing of its $430 million convertible senior notes offering.

The 2.50% notes, due in 2030, will be senior, unsecured obligations of the company.

The notes will bear interest at 2.50% per annum, payable semi-annually, beginning October 1, 2025. They will mature on April 1, 2030, unless repurchased, redeemed, or converted before then.

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

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Yesterday, VNET ( VNET ) reported strong fourth-quarter results, with net revenues rising 18.3% to RMB2.25 billion ($307.8 million).

Adjusted cash gross profit increased by 24.6%, reaching RMB923.9 million, with an improved gross margin of 41.1% compared to 39.1% in 2023.

The company also saw a 63.8% increase in adjusted EBITDA, reaching RMB721.3 million, which includes a RMB87.7 million gain from the disposal of the E-JS02 data center.

Adjusted EBITDA margin for the quarter was 32.1%, up from 23.2% in the previous year.

In a press release dated March 12, the company’s interim CEO Josh Sheng Chen said, “Moving into 2025, we remain confident in China market’s growth potential.” 

“Looking ahead, we will continue to execute our effective dual-core strategy while investing in future growth to propel our high-quality development and create long-term shareholder value,” said Qiyu Wang, Chief Financial Officer of VNET ( VNET ).

According to Benzinga Pro, VNET ( VNET ) stock has gained over 426% in the past year.

Price Action: VNET ( VNET ) shares are trading lower by 6.18% to $10.32 at last check Thursday.

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