Asos has announced its intention to raise £500m via the placing of senior unsecured guaranteed convertible bonds through its wholly owned subsidiary Cornwall Jersey.
The cash injection will be used to fund Asos’ global expansion strategy, as well as refinancing its acquisition of Topshop in February 2021.
Issued at par, the bonds due 2026 are set to be convertible into preference shares, which will then be exchanged for ordinary shares in the company.
The shares underlying the bonds will total to 6.3% of the company’s issued and outstanding shares, subject to potential adjustments.
Set 47.5% above the reference share price of £54, the initial conversion price will be equal to the placement price in the concurrent delta placement, existing shares that the group has been advised to place simultaneously.
The move follows Thursday’s (8 April) announcement that Asos’ pre-tax profits had surged 253% to £106.4m in the half-year ended 28 February 2021.
Speaking on the financial results, Nick Beighton, CEO at the company, said that the group is “delighted with our exceptional” performance during the period.
He added: “These record results, which include robust growth in sales, customer numbers and profitability, demonstrate the significant progress we have made against all of our strategic priorities and the strength of our execution capability.
“The swift integration of the Topshop brands and the impressive early customer engagement is also especially pleasing.”