Asda buyers in £2.75bn record sterling junk bond sale

Mohsin and Zuber Issa

Blackburn-based billionaire brothers Mohsin and Zuber Issa and private equity firm TDR Capital have issued the largest-ever sterling junk bond as investors snapped up their £2.75 billion debt sale to help finance the £6.8 billion acquisition of Leeds-based Asda from Walmart.

Market reports said the £2.75 billion high-yield bond sale drew more than £8 billion of orders — allowing the securities to be priced at a 3.25% coupon on the £2.25 billion secured notes tranche and 4% on a riskier £500 million unsecured bond.

“We are pleased to have secured debt financing for the acquisition of Asda at attractive rates, following exceptional levels of investor demand,” said the Issa brothers and TDR in a statement.

“The debt financing forms part of a robust capital structure that we are putting in place for Asda, to support and accelerate the growth strategy for the business.”

 

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.