Delivery Hero SE Announces Convertible Bond Repurchase Program

Delivery Hero SE, a prominent figure in the online food delivery service sector based in Berlin, has made a significant announcement regarding its financial strategy. The company is initiating a tender offer for its outstanding convertible bonds scheduled for maturation in 2025 and 2026. This financial maneuver is aimed at inviting current bondholders to sell back their bonds for cash, an effort reflecting the company’s strategy to manage its debt more efficiently.

The firm has detailed plans to buy back any existing 2025 convertible bonds, alongside up to EUR 100 million of the 2026 bonds. This ambitious buyback program aims for a target amount close to EUR 600 million, an increase from the previously stated EUR 300 million. The decision to escalate the buyback program underscores Delivery Hero's confidence in its fiscal health and operational strength.

While the repurchase price for the 2025 bonds has been set at 94.75% of the principal amount, the price for the 2026 bonds will be determined through a modified reverse Dutch auction procedure, ensuring a minimum of 89.00% of the principal amount. Beyond the principal, interest accrued on these bonds will also be compensated, aligning with the company’s commitment to fair transactions with its bondholders.

The repurchase invitations launched on 18 March 2024 and are slated to expire shortly thereafter, unless otherwise modified. This action is contingent upon the successful settlement of additional term loan facilities previously announced, emphasizing the company's complex financial strategy to bolster its capital structure and liquidity.