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April 4, 2022

Delivery Hero announces $1.5bn financing syndication

The proceeds will be used for the potential refinancing of convertible debt at maturity and working capital.

German online food delivery service Delivery Hero has announced the launch of a $1.5bn (€1.4bn) debt financing syndication to strengthen its long-term liquidity position.

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The transaction includes an $825m term facility (Dollar Term Facility) and $330m (€300m) term facility.

Delivery Hero co-founder and CEO Niklas Östberg said: “We’re excited to be able to launch this financing transaction today, as it proves our ability to access various funding sources thanks to the fundamental strength of our business.

“We have established a strong and diversified capital structure that provides us with financial flexibility and ample liquidity buffers to deliver on our strategic priorities.

“This financing transaction marks another important milestone for Delivery Hero as we are progressing on our objective of delivering superior growth while approaching group-level profitability.”

The Term Facilities have a maturity of 5.25 years, and the proceeds from these facilities will be used by the German company for the potential refinancing of convertible debt at maturity, working capital and guarantees.

In addition to the Term Facilities, Delivery Hero also intends to enter a revolving credit facility (RCF) of $413m (€375m) with a consortium of banks.

The RCF will have an initial maturity of three years, with two one-year extension options.

Delivery Hero has also released the financial performance of the company for the first two months of the year, during which it is said to have generated gross merchandise value (GMV) and Total Segment Revenue growth of 30% and 53% Year over Year (YoY), respectively.

In 2021, Delivery Hero generated revenues of $7.5bn, an 89% increase in comparison to the previous year, with revenues growing by 66%, to $2.1bn, in Q4 2021.

Free Report
img

Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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