Ocado’s objective is to provide our customers with the best shopping experience in terms of service, range and price, which builds a strong business and delivers long term value for our shareholders.
Ocado Group PLC (OTC: OCDGF) has reported a convertible bond offering of USD 642 Million to partly fund the construction of robotic warehouses for its partners overseas. Retail grocery companies such as Kroger are among Ocado’s clientele. Partnerships with big supermarket businesses have pushed the company’s valuation higher, up 68% this year or a total of 9.3 Billion British Pounds.
The bonds may be converted to shares. Senior unsecured convertible bonds that are due in 2025 may have a conversion price premium of 40-45%. “The offering enables Ocado Group to diversify its funding sources and capitalize on attractive issuance conditions,” Ocado said.
The company reported that its retail revenue growth is expected to reach 10-11% in its fiscal fourth quarter. Highlighting growth in orders such as Ocado Zoom, its fast delivery service. Previously, third quarter revenue growth was 11.4%. The company will update from q4 on December 12th.
The company’s announcement earlier this year regarding Marks & Spencer in a 1.5 Billion Pound joint venture signaled the conclusion of its supply contract that ran many years with supermarket giant Waitrose in September 2020.