// Asos launches £500m fundraising scheme with senior unsecured guaranteed convertible bonds
// Asos says the bonds will provide it with “additional flexibility to continue to invest” in its global growth strategy
// It will also help refinance its acquisition of Arcadia Group brands Topshop, Topman, Miss Selfridge and HIIT
Asos has launched a £500 million fundraising scheme to help bolster its global expansion plans.
Through its subsidiary Cornwall (Jersey) Ltd, the online fashion retailer priced its offering of £500 million of senior unsecured guaranteed convertible bonds due 2026 at par.
The bonds will carry a coupon of 0.75 per cent per annum payable semi-annually in arrear in equal instalments on April 16 and October 16 in each year, with the first interest payment date being October 16 this year.
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The initial conversion price is set at a premium of 47.5 per cent above the reference share price of £54.
Settlement and delivery of the bonds is expected to take place next week around April 16.
Asos said the bonds would provide it with “additional flexibility to continue to invest” in its global growth strategy.
It added that it would help the business refinance its February acquisition of Arcadia Group brands Topshop, Topman, Miss Selfridge and HIIT.
Details of Asos’ plan to raise £500 million of new debt comes after the publication of its half-year results yesterday.
Revenues at the online fashion retailer jumped 24 per cent year-on-year to £1.98 billion in the six months to the end of February, while half-year pre-tax profits skyrocketed 253 per cent to £106.4 million.
In the UK, Asos half-year sales were up 39 per cent year-on-year to £800.4 million, compared with 18 per cent in the EU, 16 per cent in the US and 16 per cent in the rest of the world.
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