Benzinga | Jan 28, 2022 09:42AM EST

Blackstone Agrees To Invest In VNET Via Convertible Notes

* Funds managed by Blackstone Inc (NYSE:BX) Blackstone Tactical Opportunities have agreed to invest in VNET Group Inc (NASDAQ:VNET).

* Blackstone looks to purchase VNET's $250 million of convertible notes having a term of five years and carry interest at 2% per annum.

* The Notes are convertible into the VNET's ADSs, each representing six shares, at $11.00 per ADS, representing a premium of 35% to the latest closing price of $8.14 per ADS.

* VNET is a carrier- and cloud-neutral Internet data center services provider in China.

* Josh Chen, Founder and Chair of VNET said, "Over the last two years, we have accelerated the growth of our data center footprint in high-demand locations across China's tier-1 cities. Blackstone's investment provides us with the capital to take advantage of a robust pipeline of attractive development projects that support our hyper-scale and enterprise customers. We look forward to building on this partnership with Blackstone."

* Price Action: VNET shares traded higher by 1.11% at $8.23 on the last check Friday.