The Corona boom is slowly ebbing away. Delivery Hero is also feeling the effects.
(Photo: Reuters)
Munich The food delivery service Delivery Hero has prematurely refinanced its convertible bonds, which are due to expire in 2024 and 2025, with new paper – albeit on significantly more expensive terms. The Berlin-based company placed new, seven-year convertible bonds worth one billion euros within a few hours on Monday evening, as Delivery Hero announced. At 3.25 percent, the annual interest rate on the paper is below the 3.5 to 4.0 percent that the company had previously announced.
With the money, Delivery Hero is financing the buyback of the existing convertible bonds, which expire in 2024, with a remaining volume of EUR 763 million and part of the paper that runs until 2025, the latter for up to EUR 250 million. They have a significantly lower interest rate of 0.25 percent (2024) and 0.875 percent (2025). The buyback offer runs until Tuesday evening. Delivery Hero also pays only 1.00 (maturity of almost five years) and 2.13 percent (maturity of seven and a half years) on the convertible bonds issued in 2021. The boom that the company had experienced during the corona pandemic has recently ebbed away significantly.
At the same time, the accompanying investment banks threw Delivery Hero shares on the market for 300 million euros. These are intended for investors who want to buy the convertible bonds and hedge the associated price risk. At EUR 41.25, the price was a good six percent below the Xetra closing price on Tuesday. The reference price for the new convertible bonds was derived from this. It is worth exchanging them as soon as the Delivery Hero shares rise by 40 percent, i.e. to EUR 57.75.
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