Just Eat Takeaway.com Unveils EUR1 Billion Convertible Bond Offer

(Alliance News) - Just Eat Takeaway.com NV on Monday launched a two-tranche convertible bonds ...

Alliance News 1 February, 2021 | 6:11PM
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(Alliance News) - Just Eat Takeaway.com NV on Monday launched a two-tranche convertible bonds offering totalling EUR1.00 billion.

The FTSE 100 online takeaway platform said it was offering two tranches of bonds, due August 2025 and February 2028 wit an aggregate principal amount of EUR1.00 million.

The notes will be issued at between 101.50% and 103.75% for the 2025 tranche and 100% of nominal value for the 2028 tranche and will be redeemed at 100% of nominal value. The 2025 bonds will not bear interest, while the 2028 bonds will be offered with a between 0.125% and 0.625% per annum interest rate.

The company plans to use the funds for general corporate purposes and to increase its financial flexibility, allowing Just Eat "to act on strategic opportunities which may arise".

The firm is expecting further order growth acceleration in the first 2021 financial quarter after three consecutive quarters of the same thanks to its growth strategy, investment in legacy Just Eat markets, and Covid-19 tailwinds.

looking ahead, Just Eat is intending to continue heavy investment and prioritising market share over adjusted earnings before interest, tax, depreciation, and amortisation.

"The company believes that a stronger balance sheet provides additional financial flexibility to act on strategic opportunities that may arise," said Just Eat.

Other uses of funds raised includes payment of transactions costs for its Grubhub Inc buy and potential funding requirements for its stake in iFood.

"Whilst Just Eat Takeaway.com remains committed to selling its stake in iFood and returning a portion of the proceeds to shareholders, this will happen only when it is able to realise a fair value for this highly attractive and fast-growing asset. The timing of a potential sale and monetisation remains uncertain," Just Eat emphasised.

By Anna Farley; annafarley@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Just Eat Takeaway.com NV 6,573.00 GBX 2.67

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