British supermarket Asda has refinanced over £3.2 billion of debt, pushing out the majority of its maturities into the next decade, it said today.
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 deal in 2020 which left the US giant retaining a 10% stake. Asda's interest costs in 2023 were £225m.
"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.
However, monthly industry data has shown Asda continuing to lose market share to rivals this year including to market leader Tesco and the second biggest UK supermarket group Sainsbury's.
Earlier this week, market researcher NIQ said Asda's sales were down 0.9% over the 12 weeks to April 20 year on year, with its market share down 70 basis points on the year.
