Supermarket Morrisons said that it has cut its debt from £6.2 billion at the start of 2023 to £3.8 billion currently following a string of asset sales.
Borrowings at the supermarket chain soared following its debt-funded £10 billion takeover by US hedge fund Clayton, Dubilier & Rice in 2021, with parent company Market Topco reporting borrowing of as much as £8.5 billion at one point.
Today’s announcement shows the debt levels are heading back towards the £3.2 billion on its balance sheet when it was acquired following an asset disposal drive spearheaded by CEO Rami Baitieh.
In April, Morrisons sold its petrol forecourt for a net £1.8 billion while in September was said to have negotiated a deal on 75 properties with Song Capital worth £370 million.
Morrisons said today that Term Loan Facilities have been extended to November 2030 at a lower margin, which has reduced its level of debt by approximately £200 million.
In addition, the term of a Revolving Credit Facility has been extended to August 2030.