Company: GDHLF
Filing Date: 2025-05-29
Form Type: 424B5
Source: 0001104659-25-053912
Chunk: 84

Company: GDS Holdings Ltd
Filing Date: 2025-05-29
Form: 424B5
Chunk 84
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. 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 ADS Lending Agreement is intended to facilitate privately negotiated derivative transactions relating to the ADSs, including cash-settled swaps between the ADS Borrower and investors in the convertible senior notes, by which investors in our convertible senior notes in the Concurrent Notes Offering will hedge their market risk with respect to the convertible senior notes, concurrently with, or shortly after, the pricing of the convertible senior notes. After placement of the convertible senior notes and the Borrowed ADSs, neither we nor the ADS Borrower will control how such holders may use such hedging transactions. In addition, such holders may enter into other transactions in connection with such hedging transactions, including the purchase or sale of ADSs.

Pursuant to the ADS Lending Agreement, the ADS Borrower has re-delivery obligations in respect of any Borrowed ADSs subject to the Loan Transaction, as well as for cash and non-cash distributions in respect of the notional number of the then-outstanding Borrowed ADSs (whether or not such ADS Borrower holds such ADSs). Such re-delivery may be in the form of ADSs that the ADS Borrower may need to procure by purchasing in the open market.

As a result, the existence of the ADS Lending Agreement, such hedging transactions, and any related market activity could cause the market price of the ADSs to be lower over the term of the ADS Lending Agreement than it would have otherwise been had we not entered into the ADS Lending Agreement.

Adjustments by convertible senior note investors of their hedging positions in our ADSs and the expectation thereof may have a negative effect on the market price of our ADSs.

Selling the Borrowed ADSs in this offering will allow the Borrowed ADS Underwriter or its affiliates 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. The number of Borrowed ADSs offered hereby may be more or less than the number of ADSs that will be needed in such hedging transactions at any point in time. Neither we nor the ADS Borrower will control any transactions that investors in our convertible