Ocado - comment
We do not see much incentive for the 2025 holders to tender much beneath par as Ocado is likely to call any stub rather than allow it to become current. Ocado will be able to acquire SUNs at a greater discount. Between cash on hand and the £600m debt raise, Ocado will have the resources to refinance the 2025 convertibles and the 2026 SUNs. Ocado is launching a tender for both notes.
We have not seen any price talk on the £350 2029 SUNs or the £250m 2029 SUN Convertibles. There is an investor call at 1000 BST today, and we would expect to see price talk after that. The HY call was on 16th July, so the additional information available to investors will be small. However, credit investors can quiz management on whether further equity may be needed.