Ocado - comment

The 11% coupon on the new £300m SUN is cheaper than raising equity. Also, coming within the price talk (albeit the wide end), the sticker shock for management will not be overwhelming. The new SSN has a higher coupon, and the incremental risk for the longer maturity is small. We will be looking to take a position in the new SUNs at around par, when they are free to trade. We still forecast that Ocado will generate free cash flow from H2 2026.