Asda Begins Tackling Debt Pile With New €1.05 Billion Term Loan

Britain’s third-largest supermarket chain is looking to raise £1.75 billion ($2.16 billion) through the bond sale, said the people, who asked not to be identified because they’re not authorized to speak publicly about the plans.

A spokesman for Asda declined to comment.

Separately, Asda is marketing a €1.05 billion ($1.1 billion) term loan, according to an announcement seen by Bloomberg.

Asda is looking to refinance debt after the two Issa brothers teamed up with private equity firm TDR Capital LLP in 2020 to purchase a majority stake from Walmart Inc. in a high-profile deal that valued the storied group at £6.8 billion. A sharp increase in rates has since increased scrutiny of such leveraged acquisitions.

Last year, Asda said it would buy EG Group’s UK and Ireland gas-station business — another part of the Issa brothers’ empire. In a separate development, TDR is closing in on a deal to buy Zuber Issa’s stake in Asda, Bloomberg reported last week. 

Read more: Asda Buys EG Gas Stations in UK, Building Convenience Empire

Asda will hold an investor call on Tuesday, April 23, to discuss the term loan and a deal could come as early as next week.

(Adds detail on potential bond issue, as well as further background)

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