Ocado prices £250m guaranteed bonds, £350m unsecured notes

The FTSE 250 online grocer and warehouse technology company said the bonds, part of a broader effort to raise £600m, would carry a coupon of 6.25% per annum, payable semi-annually starting 6 February 2025.

It said the bonds would be convertible into ordinary shares at an initial conversion price of 610.5p - a 50% premium above the clearing price determined through a simultaneous placing of existing shares at 407p each.

Concurrent with the convertible bond offering, Ocado announced a £350m high-yield offering of sterling-denominated senior unsecured notes, also due 2029.

The bonds would be issued at par and guaranteed by several subsidiaries, with settlement expected on or around 6 August.

If not converted, redeemed, or purchased and cancelled earlier, the bonds would be redeemed at par on 6 August 2029.

The company said it planned to list the bonds on the unregulated open market, or ‘Freiverkehr’, of the Frankfurt Stock Exchange following closing and before the first interest payment.

Ocado agreed to a 90-day lock-up period for equity and equity-related securities post-closing, subject to exceptions.

Barclays Bank, BNP Paribas and Goldman Sachs International acted as joint global coordinators, with Deutsche Bank London as joint bookrunners.

Lazard & Co served as an independent financial adviser to Ocado in relation to the offerings.

At 1142 BST, shares in Ocado Group were down 6.26% at 405.51p.

Reporting by Josh White for Sharecast.com.