British supermarket Asda has refinanced over 3.2 billion pounds ($4.0 billion) of debt, pushing out the majority of its maturities into the next decade, it said on Friday.
Asda, the UK's third largest grocer, is owned by brothers Zuber and Mohsin Issa and private equity firm TDR Capital.
The supermarket has been burdened by high debt levels since the Issas and TDR bought the business from Walmart (WMT.N) in a 6.8 billion pound deal in 2020 which left the U.S. giant retaining a 10% stake. Asda's interest costs in 2023 were 225 million pounds.
"We saw strong demand from investors after taking a thoughtful and prudent approach to refinancing our near-term debt well ahead of maturities – to further strengthen our balance sheet," Asda finance chief Michael Gleeson said, noting the refinancing followed rating agency Moody's recent upgrade of its corporate rating.
Last month, Asda reported a 24% jump in 2023 earnings to over 1 billion pounds.
However, monthly industry data has shown Asda continuing to lose market share to rivals this year including to market leader Tesco (TSCO.L) and No. 2 Sainsbury's (SBRY.L).
($1 = 0.7974 pounds)
