Ocado Group PLC (LSE:OCDO) shares plummeted more than 6% after launching a bond raise in a bid to extend the maturity of its debt pile.
Ocado confirmed a £250 million offering that will occur through guaranteed unsecured convertible bonds due in 2029.
The supermarket and tech group also launched an additional £350 million raise through offering sterling-denominated senior unsecured notes, also due in 2029.
Ocado said: “The purpose of these financing transactions is, amongst other things, to proactively extend the maturity profile of [its] debt.
“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.”
The bonds will carry a coupon of 6.25% per annum, paid semi-annually starting February 6, 2025, and are convertible into ordinary shares at an initial price of 6,105p.
Settlement and delivery of the bonds are expected to take place on or about August 6, 2024.
Earlier this month, Ocado shares rallied when it reported smaller losses for the first half of the year and raised its earnings and cashflow guidance for the full year.