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(Bloomberg) — Delivery Hero SE priced a downsized $1.4 billion loan at a much-bigger discount than initially planned, after the food-delivery platform struggled to attract investor demand in recent days amid market turmoil.
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The JPMorgan Chase & Co.-led deal late Monday priced five percentage points above benchmark and was issued at a discounted price of 96.5 cents on the dollar, according to a person familiar with the matter who asked not to be identified. The price is the third-biggest discount of 2026, according to data compiled by Bloomberg.
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Price talk was widened to those terms earlier Monday, four days after lender commitments were initially due on the transaction. The loan was first offered March 6 at 99 cents, with a size of $1.5 billion. Proceeds will go toward refinancing convertible notes due next month and in 2027, the person said. Both of the notes have conversion prices that are multiples above where Delivery Hero’s shares trade.
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A spokesperson for JPMorgan declined to comment Monday, while a spokesperson for Delivery Hero did not respond to a request for comment.
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Berlin-based Delivery Hero is one of numerous leveraged-loan deals that this month have run into investor resistance as the US-Israel war with Iran enters its third week.
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Loans for C&D Technologies Inc. and Herbalife Ltd. to refinance debt were pulled from syndication while AMC Entertainment Holdings Inc. pivoted from a planned bond-and-loan sale to a partial refinancing with Deutsche Bank AG. Deals for Consolidated Energy Ltd. and Arclin Inc. priced at steep discounts.
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Delivery Hero’s core business faces increased competition and earnings pressure as a result, according to Bloomberg Intelligence analysis. Meanwhile, Delivery Hero’s second-largest shareholder is threatening to replace the firm’s management if it doesn’t push ahead with the sale of certain assets.
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(Updates with deal pricing.)
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