Published On: September 29th, 2021Categories: Trade Ideas
During the pandemic, the popularity of online groceries has been growing, benefiting the profitability of the retail division of OCADO along with its Solutions business platform. Targeting a refinancing of its existing £225mn senior secured notes maturing in 2022, OCADO is roadshowing a potential £400mn Senior Unsecured bond due 2026. This will improve its debt maturity profile while strengthening its liquidity. But leverage is still elevated. This new issue will be suitable solely for high Yield investors aware of the risk embedded in such a high beta credit.