Gorilla Technology Group Inc. has priced a private placement of $125 million in senior unsecured convertible notes to fund initial payments and equipment purchases for its NeutraDC Batam data-centre project, the company said July 15.
Key terms of the financing
The bonds—designated Series B—carry an annual interest coupon of 7.50%, payable semi-annually, and are to mature on June 15, 2031, unless converted, redeemed or repurchased earlier under their terms. The private placement is being made to institutional investors under Section 4(a)(2) of the U.S. Securities Act and is expected to close on or about July 17, 2026, subject to customary conditions.
| Feature | Detail |
|---|---|
| Aggregate principal | $125 million |
| Coupon | 7.50% per annum, semi‑annual cash payments or, subject to conditions, ordinary shares |
| Maturity | June 15, 2031 |
| Initial conversion rate | 39.2425 ordinary shares per $1,000 principal |
| Initial conversion price | Approximately $25.4826 per share |
| Conversion floor / cap | Floor: $8.00 per share; Cap: $31.85325 per share |
What the deal means and how it works
Convertible notes are hybrid instruments that start as debt and can be exchanged for equity under predetermined terms. In this transaction the initial conversion price—about $25.48 per share—represents roughly a 52% premium over Gorilla’s July 14 closing share price of $16.77. The conversion mechanics include both downward and upward reset provisions that set a floor of $8.00 and a cap of $31.85325 per share, the latter amounting to about a 90% premium over the July 14 close.
The company said interest may be paid in cash or, at its election and subject to conditions, in ordinary shares, which gives Gorilla flexibility in managing near‑term cash flow versus equity dilution.
Use of proceeds and strategic context
Gorilla plans to deploy the net proceeds to cover advance payments to secure committed data‑centre capacity and to start the equity portion of purchasing data‑centre equipment for the NeutraDC Batam project in Indonesia. That ties the financing directly to tangible infrastructure buildout rather than general corporate purposes.
- Funding a build: proceeds earmarked for advance payments and equipment for NeutraDC Batam.
- Market link: conversion features connect lenders to equity upside if the stock rises.
- Capital structure impact: issuance creates near‑term debt obligations that may convert into equity over time, affecting leverage and shareholder dilution.
The bonds are being issued at 100 per cent of par and will be senior unsecured obligations of the company. Gorilla said additional details about the private placement will be disclosed in a Form 6‑K filed with the U.S. Securities and Exchange Commission.
This financing underscores how data‑centre development — a capital‑intensive line of business — increasingly relies on hybrid debt‑equity instruments to balance cash needs with investor demand for potential upside tied to growth in digital infrastructure.
