Ocado - comment

Ocado’s successful placing of £600m in debt removes the immediate maturities and is a positive for creditors. The cost of debt for Ocado is materially higher (given the current interest rate environment), but if the Technology business can maintain its current growth momentum the company may only need to raise fresh equity as a buffer. The coupon on the £250 2029 convertible is 6.25% (and the premium is 50% premium above today’s price). We await pricing details on the £350m 2029 SUNs.