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Just Eat Takeaway places two 1.1 billion bonds

Securities with a residual maturity of 4.5 and 7 years

Dutch takeout food company Just Eat Takeaway.com, yesterday issued two-tranche convertible bonds for a total of € 1.1 billion, more than the € 1 billion previously announced. The amount of the first tranche, the one maturing in August 2025, was raised from 500 to 600 million. Another 500 million was raised with the February 2028 tranche. The first tranche was placed on the market above par, ie at 101.50 and without coupon. The second tranche, on the other hand, was placed at par (100) and with an annual fixed coupon of 0.625%, which will be paid on a half-yearly basis every 9 February and 9 August. The gross yield at maturity of the first tranche is therefore -0.331%, that of the second tranche of 0.625%, obviously coinciding with the interest rate.

We are talking about two securities with a residual duration of 4.5 years the first and 7 years the second. Both are convertible into shares at prices of 135.58 and 144.93 Euros respectively, +45% and +55% with respect to the reference values. The company reserves the right to repay the first tranche early from 24 August 2023, if the price of an ordinary share exceeds 130% of the reference value for a certain period. In the case of the second tranche, the redemption would take place at the option of the issuer in the event that, as from February 24, 2025, the price of an ordinary share exceeds 150% of the reference value and from February 24, 2026 at least 130 % for a certain period of time.

The proceeds from the collection will be used for general corporate purposes, not to finance the acquisition of US rival Grubhub for $ 6.9 billion. If anything, they can be partially used to cover the related costs, as well as those to finance iFood, the Brazilian subsidiary. With reference to the latter, however, the company specified that the objective remains that of the sale of the shareholding, in order to monetize the stake in a rapidly growing reality. When this happens, the proceeds will be partially distributed among the shareholders. Just Eat Takeaway expects the rise in the value of the shares, which in the last year has been quite contained, of just over 8%.

Takeaway food during the lockdown experienced a boom in orders. These grew 57% in the last quarter of 2020 for Just Eat. However, budgets continue to hesitate losses. And this still holds back stock prices. Today, the stock is purchased in the 94 Euro area, that is 44% below the conversion levels for the first tranche and 54% below the conversion levels set for the second tranche.

hef - 16693

EFA News - European Food Agency
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