A&O Shearman for Asdas c. GBP3.2 billion bond and loan refinancing

A&O Shearman has advised a consortium of fourteen banks, on Asdas c.GBP3.2 billion high yield bond and loan refinancing.

The refinancing comprised of an issuance of an aggregate principal amount of GBP1,750 million 8.125% senior secured notes due 2030, concurrent tender offers for certain of Asda’s existing senior secured notes and the entry into a new EUR1,285 million senior term loan B facility, thereby successfully extending the maturity of most of its senior secured debt. In connection with the wider refinancing, Asda also extended and upsized its revolving credit facility and partially extended its senior term loan A facility.

The refinancing included the biggest Sterling high-yield bond this year and the second-largest sterling bond in the European leveraged finance market, following Asda’s original Sterling bond tranche in 2021. Asda, the UK’s third largest grocery retailer, is owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital. 

The A&O Shearman team was led by leveraged finance partner Denise Gibson and high yield partner Brad Weyland (both pictured), counsel Anand Karia, and senior associates Odysseas Theofanis and Jeane Benny. Senior associate Eileen Burgess and associates Isidora Parga, Stavros Bakolas, Katherine Hu and Saleni Pravin Kumar also assisted on the transaction.