DocMorris raises CHF 100M convertible bond to pre-pay 2028 issue

DocMorris, the Swiss online pharmacy operator, has announced plans to raise approximately CHF 100 million through a new convertible bond issuance. The proceeds will primarily be used to pre-pay its existing convertible bond maturing in 2028, thereby reducing potential dilution for existing shareholders. The new bond, due in 2031, will offer a coupon rate between 1.5% and 2.0%, down from the 3.0% yield on the current 2028 issue. The conversion price for the new bond will be set at 27.5% to 32.5% above the reference share price, calculated as the average volume-weighted share price from September 9 to 11. This pricing reflects a strategic effort to mitigate dilution risks associated with future share issuance. The existing 2028 bond, with a nominal value of CHF 49.6 million, underpins 7.6 million shares. The new bond, with roughly double the volume, will support 7.0 million shares instead, indicating a more conservative approach to share dilution. DocMorris will use part of the proceeds to acquire the 2028 bond through bilateral agreements, while an additional CHF 10 million will be allocated to general corporate purposes. The pricing and allocation of the new convertible bond are scheduled for mid-September, with the full transaction expected to settle on September 16.