(Bloomberg) — Ocado Group Plc is looking to sell its first bonds in nearly three years, a couple of weeks after the provider of robotic warehouses reported that it had narrowed its losses.
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The British company has launched a £350 million ($450 million) junk-bond offering, and is also marketing around £250 million ($321 million) of guaranteed senior convertible bonds, according to a regulatory filing. Both sets of bonds will mature in 2029.
Proceeds from the deal will help fund the purchase of debt due 2025 and 2026 via a tender offer, according to a statement.
Ocado was last active in the public-debt markets in 2021, when it sold £500 million in high-yield bonds. The company recently reported that it had nearly halved its pretax loss for the first half of the year to £154 million — a better result than analysts expected — and said cash flow is improving.
The firm, which was founded by three former Goldman Sachs bankers, sees its future as a maker of automated warehouses for supermarkets around the world. But key customers including US grocer Kroger Co. and Canada’s Sobeys have slowed their roll-out of new warehouses, hindering the company’s ambitions.
Most of its revenue still comes from the online-grocery venture it shares with Marks & Spencer Group Plc.
–With assistance from Hannah Benjamin-Cook.
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