The latest: Data center operator Chindata Group Holdings Ltd. (CD.US) announced on Thursday it has priced its offer of $300 million worth of senior notes due in 2026. The notes will bear interest at a coupon rate of 10.50% per annum, and will be issued at a price of 99.061% of the aggregate principal amount. 

Looking up: The notes experienced strong demand, attracting investors from Asia, Europe, the Middle East and Africa, with final order bookings reaching nearly $1 billion.

Take Note: The notes were assigned a BBB- rating by Fitch, meaning the company’s creditworthiness, corporate assets and financial condition are all considered moderate.

Digging Deeper: Chindata is one of China’s three largest independent data center operators, competing against GDS Holdings (GDS.US; 9698.HK) and VNET Group (VNET.US). Their sector has received strong government support as China seeks to develop eight computing hubs and 10 data center clusters as part of an Eastern Data, Western Computing plan first announced in 2020. M&A in the sector has been on the rise in recent years, with both Chindata and VNET attracting potential suitors.

Market Reaction: Chindata shares rose 3.3% to $8.46 on Thursday. The stock now trades at the upper end of its 52-week range.

Translation by Jony Ho

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