Company: GDHLF
Filing Date: 2025-05-29
Form Type: 424B5
Source: 0001104659-25-053912
Chunk: 92

Company: GDS Holdings Ltd
Filing Date: 2025-05-29
Form: 424B5
Chunk 92
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 senior notes in full, in reliance on the exemption from registration provided by Rule 144A under the Securities Act (the “Concurrent Notes Offering”).

The ADS Borrower or its affiliates will use the short positions resulting from the Delta Placement of the Borrowed ADSs to facilitate privately negotiated derivative transactions, by which certain investors in our convertible senior notes, who employ a convertible arbitrage strategy, will hedge their market risk with respect to the convertible senior notes. These derivative transactions are expected to be on market-standard terms for such type of transactions. During the term of such transactions, such investors may use their synthetic short positions established thereunder at their sole discretion.

The number of Borrowed ADSs to be sold hereunder will depend on what portion of investors in the Concurrent Notes Offering desire to hedge their investment in the Notes through privately negotiated derivatives transactions with the ADS Borrower or its affiliates, and will be determined at the time of pricing of the Delta Placement of Borrowed ADSs and is expected to be no greater than commercially reasonable initial short positions of such arbitrage investors. It is possible, however, that investors in the Notes in the Concurrent Notes Offering may short sell additional shares of our Class A ordinary shares shortly after the pricing of this offering. Such additional sales could have the effect of causing the market price of our shares of Class A ordinary shares to be lower than it would have been absent such selling.

The underwriters will initially offer the Borrowed ADSs to the public at US$24.50 per ADS, which is the same price as the price to the public per ADS in the Concurrent Primary ADSs Offering (each as defined below), and may subsequently offer such Borrowed ADSs for sale in one or more transactions on the Nasdaq Global Market, in the over the counter market, through negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to prevailing market prices at the time of sale or at negotiated prices. See “Underwriting (Conflicts of Interest).” We do not expect to lend any additional ADSs to the ADS Borrower or any other party to facilitate any short positions that may be desired by any initial or subsequent investors in the convertible senior notes after this offering, and will not lend any additional ADSs following any exercise by the initial purchasers in the concurrent convertible notes offering described below of their option to purchase additional convertible senior notes. There can be no assurance that the ADS Borrower will continue to facilitate any privately negotiated derivative transactions by which any convertible arbitrage investors in our convertible senior notes