Ocado in £500m bond issue as revenues climb
Ocado has launched a £500 million bond issue.
The listed online supermarket and technology company said it has made the move to help finance its international partnership deals.
Ocado recently revealed it is to open a sixth customer fulfilment centre in the UK while it is preparing for a 50-50 partnership with M&S.
It is also partnering with Asia's largest online supermarket to help it establish an online offering.
Ocado Retail also revealed that it expects revenue growth of 10-11 per cent in the 13 weeks to December 1st, with Ocado Zoom – where groceries are delivered within 60 minutes – playing a role.
The firm said the £500m of unsecured convertible bonds, due in 2025, should carry a coupon of between 0.75 per cent and 1.25 per cent per annum.
A convertible bond is a fixed-income debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares.
The conversion from the bond to stock can be done at certain times during the bond's life and is usually at the discretion of the bondholder.
Goldman Sachs International and J.P. Morgan Cazenove are acting as joint bookrunners for the offering.