Twitter LinkedIn
    Saturday, June 10
    Login
    0 Shopping Cart
    Twitter LinkedIn
    Private Equity InsiderPrivate Equity Insider
    • About Us
    • Digital Events
    • Our Network
      • Reach
      • Sponsors
      • Members
    Private Equity InsiderPrivate Equity Insider
    Home»Deals & Transactions»Billionaire Asda buyers raise £2.75bn in record sterling junk bond sale
    Deals & Transactions

    Billionaire Asda buyers raise £2.75bn in record sterling junk bond sale

    February 12, 20211 Min Read
    LinkedIn Facebook Twitter Email WhatsApp
    Share
    LinkedIn Facebook Twitter Email WhatsApp

    The private equity-backed billionaires buying Asda have raised the largest-ever sterling junk bond, with investors piling in to the £2.75bn debt sale backing the UK’s biggest leveraged buyout in more than a decade.

    The new junk bond is the centrepiece of an intricate series of debt deals and asset disposals through which Blackburn-based brothers Mohsin and Zuber Issa and the private equity firm TDR Capital will acquire the grocery chain for £6.8bn.

    While this structure has allowed the new buyers to put up only a thin sliver of their own equity, the £2.75bn bond sale drew more than £8bn of orders from investors, who were enticed by Asda’s relatively low debt burden and the £9bn of property value underpinning the deal.

    “It was always going to be a blowout deal,” said Vivek Bommi, a senior portfolio manager at Neuberger Berman. “It’s an easy business model and reasonably levered.”

    Read More

    Source: Financial Times

    By Robert Smith, Nikou Asgari and Kaye Wiggins

    Related

    Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.

    Buyouts deals PE Insider Private Equity
    Share. LinkedIn Facebook Twitter Email WhatsApp

    Related Posts

    Animal drugs maker Dechra agrees to lower £4.5bn takeover by Swedish private equity firm EQT

    June 3, 2023

    Warburg and Advent in the lead to acquire Baxter’s biopharma unit

    May 13, 2023

    BlackRock Sells Asset-Backed Bonds From Credit Suisse’s Books

    April 14, 2023

    KKR buys stake in communications firm FGS Global

    April 11, 2023

    Comments are closed.

    Other Articles

    ArK Kapital and Pollen Street Capital sign SEK1.5bn senior secured debt facility

    April 19, 2022

    Blackstone takes majority stake in ASK Investment Managers, valuation of more than $1bn

    February 15, 2022

    Providence seeks to exit music market with $600mn song sale

    May 4, 2022

    PE firm Carlyle commits to net zero greenhouse gas emissions by 2050

    February 2, 2022

    Private Equity Insider LLC
    1212 Avenue of the Americas
    New York City 10036
    USA

    [email protected]

    Twitter LinkedIn
    © 2023 Private Equity Insider LLC. All rights reserved.
    • About
    • Terms of Use
    • Cookie Policy
    • Privacy Policy
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.

    View Cart Checkout Continue Shopping

    Sign In or Register

    Welcome Back!

    Login to your account below.


    Lost password?