Ocado Group PLC has successfully priced an offering of 450 million in aggregate principal amount of senior unsecured notes due 2029 with a coupon of 10.500% and an issue price of 100%. The High Yield Offering was upsized from the originally anticipated size of 350 million due to strong demand. The Notes will be guaranteed by certain Ocado subsidiaries and are expected to close on 8 August 2024, subject to customary closing conditions. Additionally, Ocado has successfully priced an offering of 250 million in aggregate principal amount of guaranteed senior unsecured convertible bonds due 2029 with a coupon of 6.25%.
The net proceeds from the Offerings, together with cash from the balance sheet, are intended to be used to fund the purchase of a portion of Ocado's outstanding 0.875% senior unsecured convertible bonds due 2025 and 3.875% senior unsecured notes due 2026. These financing transactions are intended to extend the maturity profile of Ocado's debt. The company expects to retain any excess funds to be used to reduce leverage over time. Ocado Group is a UK-based technology company that provides end-to-end online grocery fulfillment solutions to thirteen of the world's largest grocery retailers and holds a 50% share of Ocado Retail Ltd in the UK in a Joint Venture with Marks & Spencer.