Delivery Hero launches €1.4 billion debt financing syndication

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Delivery Hero launches €1.4 billion debt financing syndication. Source: depositphotos.com

Berlin-based local delivery platform Delivery Hero is readying a €1.4 billion debt financing round. One portion of the debt financing solution is $825 million and the other is $300 million, both with maturities of 5.25 years.

The company also signed a 375 million euro RCF (revolving credit facility) with a consortium of banks for an initial term of three years, but which also includes two one-year extension options. This RCF is not expected to be used once the debt financing solution is complete.

According to a statement from Delivery Hero, the loan was designed to sustainably strengthen the company’s strong cash position and that the proceeds will be used for “general corporate purposes, including maturing convertible bonds for potential refinancing, working capital and warranties.”

We are delighted to begin this financing transaction today as it demonstrates our ability to access multiple sources of financing through the fundamental strength of our business. We have established a strong and diversified capital structure that provides us with sufficient financial flexibility and liquidity to achieve our strategic priorities. This funding transaction marks another important milestone for Delivery Hero as it brings us closer to our goal of achieving exceptional growth while bringing us closer to profitability at the group level
Niklas Östberg, CEO and co-founder of Delivery Hero

The announcement comes just 12 weeks after Delivery Hero sold its stake in Latin America’s Rappi, and a year into 2021 as the group realigned its global operations, including buying a further stake in Spain’s Glovo.

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