Redcare Pharmacy Issues New Convertible Bonds and Buys Back Existing Ones

Redcare Pharmacy N.V., Europe's leading e-pharmacy, has successfully placed EUR 300 million in new convertible bonds with a seven-year maturity. These bonds can be converted into ordinary shares and include a put option for bondholders on the fifth anniversary. Simultaneously, Redcare repurchased approximately 70.2% of its EUR 225 million outstanding convertible bonds due 2028, which also had a put option for January 2026. This strategic move extends the company's debt maturity profile favorably.

The new bonds were issued at EUR 100,000 each, with a semi-annual coupon of 1.75%. The conversion price is set at EUR 173.74, a 42.5% premium over the reference price. Unconverted bonds will be redeemed in 2032 at 110% of the principal, raising the effective conversion price to EUR 191.11.

These actions reflect Redcare's discipline in capital management, reducing potential shareholder dilution and mitigating refinancing risks, while ensuring future funding ease. Goldman Sachs and Deutsche Bank coordinated the placement.