VNET Group (VNET) said Thursday it priced its $430 million offering of 2.50% convertible senior notes due 2030.

The offering is expected to close on or about March 17, subject to the satisfaction of customary closing conditions, the company said.

The notes will bear interest at 2.50% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2025.

The company will settle conversions by paying or delivering, as applicable, cash, the American Depositary Shares, each representing six class A ordinary shares, or a combination of the two, subject to certain restrictions.

The notes will initially be convertible at a conversion rate of 72.7273 American Depositary Shares per $1,000 of notes, which is equivalent to an initial conversion price of approximately $13.75 per American Depositary Share. The initial conversion rate is subject to adjustment upon the occurrence of certain events.

The company said it intends to use the net proceeds from the offering for capital investment in wholesale internet data center projects, working capital, and general corporate purposes.