Ocado Prices £300 Million High Yield Bond Offering
Why we think this is good
The RNS announcement indicates that Ocado has successfully priced a £300 million senior unsecured notes offering due 2030, with a coupon of 11% and an issue price of 100%. This appears to be a firm, binding agreement, which is a positive sign. The financing is intended to extend Ocado's debt maturity profile, which could be seen as a prudent move. However, as this is a financing announcement and not a profit upgrade or trading update, the sentiment score is capped at 'Good' in line with the Very Good rating constraint.
Key Points
- Ocado prices £300 million senior unsecured notes offering due 2030
- Coupon of 11% and issue price of 100%
- Proceeds to be used to purchase outstanding convertible bonds and senior notes
- Intended to extend Ocado's debt maturity profile
Summary
Ocado Group has successfully priced a £300 million senior unsecured notes offering due 2030, with a coupon of 11% and an issue price of 100%. The proceeds from the offering, along with cash from the balance sheet, will be used to fund the purchase of a portion of Ocado's outstanding convertible bonds and senior notes, in order to extend the maturity profile of the company's debt. This financing transaction is expected to close on 8 May 2025, subject to customary closing conditions.