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Ocado extends debt and raises new equity to grow the business

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Ocado says the extension of its debt deadline in tandem with a move to raise new funds means it will be able to focus on growing its online grocery business and improving the customer experience.

The company announced this week that it has extended its existing £100m bank debt facilities for an additional 18 months to July 2015 and raised a further £35.8m through a new share placing with existing shareholders.

Duncan Tatton-Brown, chief financial officer, said: “We have undertaken this placing and early extension of our existing facilities to ensure that Ocado has the continuing resources to focus on delivering growth through increasing the range and enhancing our customers’ shopping experience.

“It also gives us greater flexibility to invest in various marketing initiatives around the opening of CFC2 (the second fulfillment centre) and significantly expand our non-food offering.”

Ocado is set to finish investing in its second customer fulfillment centre during 2013, and expects to start delivering orders from it in February.

Making the announcement, Ocado also said that sales had risen by 11%, year on year, in the 14 weeks to November 11. Weekly orders also reached 140,000 for the first time in November 2012.

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