Ocado has increased its refinancing target to £700m amid “strong demand”.
On Tuesday, the technology group and online supermarket said it was looking to raise £600m in bonds due to be repaid in 2029 to finance a tender offer of bonds that already exist and are due at an earlier date.
Ocado launched an offer of £250m guaranteed senior unsecured convertible bonds due in five years, alongside an offer of £350m of sterling-denominated senior unsecured notes, also due in 2029.
However, it said today (2 August) that it had expanded the £350m figure to £450m “due to strong demand”.
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The high yield offering is expected to close on 8 August.
The group said that as the net proceeds from the bond issues exceed the amount required to fund the tender offer, it “expects to retain such funds to be used to reduce leverage over time, whether at maturity of the relevant debt or otherwise”.
On Tuesday, Ocado Group told Reuters: “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.”
