Ocado Retail successfully refinances and increases revolving credit facility to £100 million

Ocado Retail (“Ocado Retail” or “the Company”), the world’s largest dedicated online supermarket, is pleased to announce that it has successfully refinanced and increased its revolving credit facility (“RCF”), further strengthening its liquidity position to support its ambitious growth agenda. 

The new £100 million unsecured, standalone RCF replaces the Company’s previous £30 million shareholder guaranteed facility it agreed in 2023. The facility includes an accordion option to increase total commitments by a further £50 million, subject to lender consent.

The RCF has been agreed with a syndicate of four relationship banks – ABN AMRO, Bank of China, BNP Paribas and NatWest Group. The syndicate of two existing and two new, reflects a balanced mix of UK and international institutions and demonstrates continued support for the Company’s strategy and credit profile.

The facility has a three-year initial term with a two-year extension option, at the Company’s discretion and subject to customary approvals.

The refinancing has been secured on significantly improved terms relative to the existing RCF, both in terms of cost and covenant package. This will enable greater operational and financial flexibility aligning the facility more closely with the Company’s current scale and support Ocado Retail’s continued growth. Ocado Retail was advised by EY-Parthenon and Slaughter and May on the successful process. 

Ocado Retail’s broader capital structure also includes a £210 million shareholder loan facility, of which £180 million is currently drawn. The facility is provided by the Company’s two shareholders (each holding a 50% stake).

Mat Ankers, Chief Financial Officer at Ocado Retail, commented:

“I am delighted we’ve secured our refinancing on materially improved terms, reflecting the strength of our financial performance and the significant strategic progress Ocado Retail has made in recent years.

“This new facility enhances our liquidity and financial flexibility, enabling us to sustain our market-leading momentum as the UK’s fastest-growing grocer while continuing to deliver an unbeatable range, unrivalled service and reassuringly good value. 

“We are grateful for the continued support of our relationship banks, whose backing underscores confidence in our strategy and long-term ambitions alongside the valued support of our advisors EY-Parthenon and Slaughter and May.”