Ocado has raised its funding target to £700m due to “strong demand”.
The grocery technology giant said on Tuesday it was looking to raise £600m through new bonds to finance a tender offer of its existing bonds that are due next year.
However, it announced today (2 August) that “due to stong demand”, it had upsized its originally anticipated £350m offer of sterling-denominated senior unsecured notes due 2029 to £450m.
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The high yield offering, which is expected to close on 8 August, is also joined by an offer of £250m of guaranteed senior unsecured convertible bonds also due in 2029.
Ocado Group said the net proceeds from the bond issues exceed the amount required to fund the tender offer and as such, it “expects to retain such funds to be used to reduce leverage over time, whether at maturity of the relevant debt or otherwise”.
The group said on Tuesday: “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.”
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