BERLIN. The Management Board of Rocket Internet SE (“Rocket Internet” or the “Company”) decided to spend up to EUR 100 million (investment amount) on a program to repurchase senior unsecured convertible bonds due 2022 (ISIN DE000A161KH4) issued by the Company in 2015. The convertible bond buyback program will terminate on September 30, 2018. Repurchases of convertible bonds under the program may commence October 2, 2017. Repurchased convertible bonds will be held by the Company or cancelled. The Company’s Supervisory Board approved the repurchase program.
Under previous buyback programs, the latest of which has been terminated with effect of today, the Company bought back EUR 252 million (nominal) of the original EUR 550 million issuance for EUR 220 million (investment amount), leaving EUR 298 million convertible bonds (nominal) still outstanding.
With a gross cash balance of EUR 1.9 billion as of end of August 2017, Rocket Internet is very well capitalized. The convertible bond repurchase program is expected to lower the Company’s cost of financing, since the convertible bond bears 3.0% p.a. interest and might lead to dilution upon conversion.
Repurchases of the convertible bonds will be carried out using one or more banks based on instructions given by Rocket Internet. The buyback may be suspended and resumed at any time. Rocket Internet will make an announcement once the repurchase program has been completed.