Ocado - comment

The new debt/convertible will cost around £38m more in interest, but it fills the maturity gap for the company and is positive for creditors. We are assuming the books close successfully. At around 700bp over 5-year swaps, the SUNs are not cheap but allow management to focus on executing the Technology rollout. SUNs will cost an additional £24m a year in interest, the new convertible £14m. We will be updating our model and will publish an update shortly.