Asda has refinanced its billion-pound debt pile as the supermarket seeks to put its finances on a stronger footing after the billionaire Issa brothers and private equity firm TDR saddled the firm with loans when they bought it from Walmart in 2021.
The firm said it successfully raised £1.75 billion of senior secured notes at a rate of 8.1%, up from a previous senior secured notes rate of 3.25%, and refinanced its £900 million Term Loan B, which was secured at a EURIBOR+4.25% interest rate, an increase on the previous loan of EURIBOR+2.75%.The new senior secured notes and term loan are set to mature in 2030 and 2031, respectively. Asda also used £300 million of balance sheet cash to reduce gross debt.
