Delivery Hero orders up €1.4 billion in debt financing

Looking to secure a stronger liquidity position, Berlin-based Delivery Hero has launched a debt financing syndication totalling €1.4 billion
Delivery Hero orders up €1.4 billion in debt financing

Berlin-based local delivery platform Delivery Hero has cobbled together a round of debt financing equivalent to €1.4 billion. One portion of the debt financing solution arrives in the amount of $825 million, the second, a €300 million facility, both having a 5.25-year lifespan. the company is also expected to enter an RCF (revolving credit facility) to the tune of €375 million with a consortium of banks, having an initial 3-year maturity, but also includes two 1-year extension options. This RCF is expected to remain undrawn at the closing of the debt financing solution.

According to a statement issued by Delivery Hero, the loan is slated to ‘bolster the company’s strong liquidity position for the long-term’, also citing that the influx capital is expected to be used for, ‘general corporate purposes, including potential refinancing of convertible debt at maturity, working capital and guarantees’

"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,” commented Delivery Hero CEO and co-founder Niklas Östberg. “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."

This announcement arrives just 12 weeks to the day of Delivery Hero selling off its stake in Latin-America-based Rappi, and a 2021 that saw the group realigning its global footprint, most notably purchasing a larger stake in Spain’s Glovo.

Follow the developments in the technology world. What would you like us to deliver to you?
Your subscription registration has been successfully created.