Sainsbury’s rings up £3.5bn Asda loan

By Mike Turner
05 Jul 2018

UK retailer J Sainsbury’s has signed a £3.5bn loan package to back its acquisition of Walmart-owned Asda, with the company raising more debt than the cash component of the deal despite analysts raising concerns about the borrower’s recent debt levels.

Sainsbury’s has signed an acquisition loan facility with maturities of around 3.5 years and five years and has increased its existing multi-tenor revolving credit facility from £1.45bn to £2bn to part finance its £7.3bn purchase.

However, the cash component of the deal is £2.975bn.

“Sainsbury’s doesn’t really have a strong ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial