Online supermarket and tech giant Ocado is extending the maturity of its debt by raising bonds worth millions of pounds.
In an announcement to the London Stock Exchange, the group said it launched a successful offering of £250m of guaranteed unsecured convertible bonds due in 2029 and would offer a further £350m of sterling-denominated senior unsecured notes also due in 2029.
Ocado said in a statement: “The purpose of these financing transactions is, amongst other things, to proactively extend the maturity profile of Ocado’s debt.
“An appropriate financing policy and sufficient liquidity position continue to be an important foundation to enable investment in Ocado’s growth plans while maintaining a healthy financial profile.”
The bonds will carry a coupon of 6.25% per annum to be paid semi-annually in equal instalments starting February 6, 2025, and continuing to be paid on August 6 and February 6 each year.
The group added that the bonds will be convertible into ordinary shares of two pence each, with the initial conversion price at £6.105.
Ocado said that the settlement and delivery of the bonds are expected to take place on or about August 6, 2024, but added that if they are not previously “converted, redeemed or purchased and cancelled”, the bonds will be redeemed at face value on August 6, 2029.
The news follows Ocado’s half-year results to June 2, which saw pre-tax losses decline to £154m from £290m.
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