ASOS PLC has priced a £500mln convertible bond, the proceeds from which it will use to refinance the acquisition of Topshop brands it bought in February as part of a £265mln deal.
It said the influx of new cash will also provide “additional flexibility to continue to invest behind its global growth strategy”.
The debt will carry an annual coupon of 0.75% paid in two tranches each year. Conversion, meanwhile, would take place at just over £79 a share, or a 47.5% premium to the reference price of £54.
The stock closed at £55.90.
ASOS said it had been ‘pleasantly surprised by the performance of Topshop since the acquisition following a trebling of its sales.
On a call following interim results on Thursday, chief executive Nick Beighton said: “We always knew that these brands resonated with our customers.
“We said at the time of the acquisition that we knew these brands resonated with the fashion-loving, twentysomething customers.
“We also predicted that these brands would resonate most strongly in the UK, North America, and Germany, and we’re delighted that actually played out the way we thought. We are pleasantly surprised with it, but it's kind of what we expected.”