Supermarket Asda has refinanced some £3.2 billion worth of debt as a potential change of ownership looms.
New bond agreements maturing in 2030 and 2031 have been secured, according to the supermarket, while £300 million was used from its balance sheet to reduce debt.
This comes as Zuber Issa reportedly closes in on the sale of his 22.5% stake in Asda to TDR Capital, which would see the private equity group take full control of the supermarket.
Asda’s net debt stood at £3.8 billion as of the end of last year, with this having been racked up following the Issa brothers' £6.8 billion takeover of the supermarket from Walmart in 2021.
“We saw strong demand from investors after taking a thoughtful and prudent approach to refinancing our near-term debt well ahead of maturities,” chief financial officer Michael Gleeson said.
This was “to further strengthen our balance sheet,” he continued.
“The refinancing also reflects the wider strength of Asda as a diversified retail group [...] and following recent investments, a major presence in the high-growth convenience and food-service markets.”