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LONDON - Ocado Group (LON:OCDO) plc, the UK-based technology company known for its online grocery solutions, has successfully priced its offering of £300 million senior unsecured notes due 2030. The notes, which carry an 11% coupon and were issued at par value, are to be guaranteed by certain Ocado subsidiaries. The closing of the offering is anticipated for Monday, subject to customary conditions.
The proceeds from this offering, along with additional cash from Ocado’s balance sheet if necessary, are earmarked for the repurchase of a portion of the company’s existing debt. Specifically, Ocado aims to buy back its outstanding 0.875% senior unsecured convertible bonds due 2025 and 3.875% senior unsecured notes due 2026, targeting securities held by non-US persons located outside the United States. Should the offering’s proceeds exceed the amount required for these purchases, the excess funds will be retained by Ocado to gradually reduce leverage, either at debt maturity or potentially earlier through secondary market bond purchases.
This debt restructuring strategy is intended to extend the maturity profile of Ocado’s debt, as part of the company’s broader financial management practices. The offering is not open to US persons or in jurisdictions where such securities sales are prohibited by law, and the notes will not be registered under the U.S. Securities Act of 1933.
Ocado, which trades on the London Stock Exchange (LON:LSEG) under the ticker OCDO, is a joint venture partner with Marks & Spencer (OTC:MAKSY) in Ocado Retail Ltd and provides advanced online grocery retail solutions to major global retailers. The company’s technology portfolio includes robotics, artificial intelligence, machine learning, and other cutting-edge technologies designed to enhance online grocery fulfillment.
This financial maneuver comes as part of Ocado’s ongoing efforts to optimize its capital structure and financial stability. The information contained in this article is based on a press release statement from Ocado Group plc.
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