Slaughter and May is advising Ocado Group plc (Ocado) on an offering of £600 million of guaranteed senior unsecured convertible bonds due 2025 (the Bonds).
The net proceeds of the issue of the Bonds will be used to fund capital expenditure in relation to Ocado Solutions’ commitments and general corporate purposes. The offering enables Ocado to diversify its funding sources and capitalise on attractive issuance conditions.
The Bonds will be issued by Ocado Group plc and initially guaranteed by Ocado Operating Limited, Ocado Innovation Limited, Ocado Central Services Limited, Ocado Solutions Limited and Ocado Holdings Limited.
The Bonds will be issued at par and will carry a coupon of 0.875% per annum payable semi-annually in arrear. The Bonds will be convertible into ordinary shares of Ocado. The initial conversion price will be £17.9308, representing a premium of 45% above the reference price of £12.3661, being the volume weighted average price of an Ocado ordinary share on the London Stock Exchange between opening and pricing of the offering on 2 December 2019.
Application is intended to be made for the Bonds to be admitted to trading on the unregulated open market (Freiverkehr) of the Frankfurt Stock Exchange prior to the first interest payment date.
Goldman Sachs International and J.P. Morgan Cazenove were Joint Bookrunners.