Farfetch has announced the issuance of $350 million in convertible senior note due on May 1, 2027. The offering is scheduled to close on April 30. The securities will bear an annual interest rate of 3.75 percent and coupons will be paid twice a year on May 1 and Nov.1. Buyers will have the possibility to purchase up to $50 million in additional notes.
The conversion rate will be 61.9867 of Farfetch’s Class A ordinary shares per $1,000 principal amount of notes, equivalent to a conversion price of approximately $16.13 per share or about 35 percent over the last price on April 27.
The Briish online fashion retailer expects net proceeds to reach $340.7 million, or $389.5 million if the additional notes are bought entirely. Farfetch intends to use the funds for general corporate purposes.
Farfetch initially planned to issue $300 million worth of notes, with an option for an additional $45 million. The increase indicates investors’ appetite for the securities.