Gorilla Technology Group Inc. (NASDAQ:GRRR) is in the spotlight Thursday after the company announced on Wednesday the pricing of a $125 million senior unsecured convertible bond offering to fund its NeutraDC Batam data center project in Indonesia.

Gorilla Prices $125M Convertible Notes

Gorilla priced $125 million in aggregate principal amount of 7.50% Senior Unsecured Convertible Notes, Series B, due 2031. The bonds are being sold in a private placement to institutional investors, with the offering expected to close on or about July 17, subject to customary closing conditions. The notes will accrue interest payable semi-annually at 7.50% per annum and mature on June 15, 2031, unless earlier converted, redeemed, or repurchased.

The initial conversion rate is 39.2425 ordinary shares per $1,000 principal amount of bonds, equivalent to a conversion price of approximately $25.48 per share — a premium of roughly 52% over Gorilla’s July 14 closing price of $16.77. The conversion price includes two reset mechanisms: a downward reset with a floor of $8.00 per share, and an upward reset with a cap of $31.85, representing a 90% premium over the July 14 closing price.

Gorilla Funds NeutraDC Batam Project

Gorilla intends to use the net proceeds to fund advance payments for committed data center capacity and the equity portion of data center equipment purchases tied to its NeutraDC Batam project in Indonesia, announced on June 23. Any remaining proceeds will be used for general corporate purposes.

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Gorilla Shares Edge Lower

GRRR Price Action: At the time of publication, Gorilla shares are trading 1.60% lower at $11.70, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.