FRANKFURT (Dow Jones)–Delivery Hero has placed convertible bonds in the amount of 1 billion euros on the market. The Berlin-based supplier announced that these were non-subordinated, unsecured convertible bonds due February 2030. They were placed in a private placement exclusively to institutional investors in certain jurisdictions. The subscription rights of the shareholders were excluded.
Delivery Hero achieves gross proceeds of EUR 1 billion from the transaction. This is intended to be used to fund the said concurrently announced buyback offer of outstanding convertible bonds and for general corporate purposes. The buyback offer will begin on February 14 at 8:00 a.m. and end at 5:30 p.m.
The convertible bonds will be issued at 100 percent of their principal amount, according to the announcement, and will bear interest at a coupon rate of 3.25 percent per annum, payable semi-annually.
They are initially convertible into around 17,316,017 new or existing no-par value registered shares in Delivery Hero. According to the announcement, the initial conversion price of EUR 57.75 corresponds to a conversion premium of 40.0 percent on the reference price of EUR 41.25. The new issue is divided into 10,000 bonds with a nominal value of EUR 100,000 each.
The convertible bonds are expected to be issued on or about February 21, and will begin trading over the counter on the Frankfurt Stock Exchange immediately thereafter.
Holders of the convertible bonds are entitled to request early redemption of their bonds on August 21, 2028.
At the same time, Delivery Hero announced that existing shares in the company had been placed for investors in the convertible bonds in order to hedge the market risk of an investment in them. The placement price was determined as part of an accelerated placement process (accelerated bookbuilding). The company will not receive any proceeds from the offering of existing shares.
Delivery Hero can repay the convertible bonds at any time on or after September 11, 2028, provided that the stock exchange price of the Delivery Hero share reaches at least 150 percent of the then applicable conversion price over a certain period, or (ii) if only a maximum of 20 percent of the aggregate nominal amount of the convertible bonds outstanding.
Contact to the author: [email protected]; @UlrikeDauer_
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(END) Dow Jones Newswires
February 14, 2023 00:36 ET (05:36 GMT)
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