Delivery Hero Raises $1.5 Billion in Convertible Bond Sale

Delivery Hero SE raised 1.25 billion euros ($1.5 billion) from an offering of notes convertible into shares, marking the food-delivery company’s third equity-linked issuance in less than two years.

The company sold 750 million euros of notes maturing in 2026 and 500 million euros of 2029 securities, according to terms seen by Bloomberg. Proceeds will be used for general corporate purposes and to “take advantage of attractive investment opportunities that may arise,” the company said in a statement. 

Eager to lock in cheap financing from investors before bond yields rise further, companies have piled into the equity-linked market this year, with a blockbuster $16 billion raised across Europe, the Middle East and Africa. Delivery Hero’s offering is one of the biggest in Europe this year.

Delivery Hero may spend the money on operating or capital expenses, or on acquisitions, Giles Thorne, an analyst at Jefferies, wrote in a note. 

 “Today’s raise promises the near term will be remain busy,” he said. The company has been “masterful” in using its rising stock price to match competitors’ capitalization, he said.

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