LONDON--Supermarket chain J. Sainsbury PLC (SBRY.LN) Thursday
said it will issue convertible bonds to raise GBP250 million
($390.3 million).
"The proceeds of the offering will be used for the general
corporate purposes of the group, including via on-lending to
subsidiaries and by way of contributions to the group's pension
funds," Sainsburys said.
The perpetual subordinated bonds, which are convertible into
ordinary Sainsburys shares, are expected to bear interest of
between 2.5% to 3%. The final terms will be announced later
Thursday, Sainsburys said.
It said the issue will coincide with another offering.
"Following a series of meetings this week with fixed income
investors in London and Edinburgh, the company also announces today
the launch of an unrated benchmark GBP denominated non-convertible
hybrid capital transaction," Sainsburys said, adding that details
will be released separately.
Write to Ed Ballard at ed.ballard@wsj.com
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