Investors flock to support the UK’s largest leveraged buyout in over a decade!
- Issa brothers raised a record £2.75bn through a sterling junk bond.
- The bond attracted over £8bn in investor orders.
- The acquisition of Asda is valued at £6.8bn.
- The deal involves minimal use of the brothers’ own equity.
- The financing supports Asda’s growth strategy.
The Issa brothers, who recently purchased Asda, have successfully raised an impressive £2.75 billion through a sterling junk bond. This remarkable achievement comes as investors show strong support for the UK’s largest leveraged buyout in more than ten years. Moshin and Zuber Issa, alongside private equity firm TDR Capital, are set to acquire the supermarket chain for a total of £6.8 billion. They are financing this acquisition through a combination of debt deals and asset sales. The latest junk bond offering was met with overwhelming interest, drawing in over £8 billion from investors. This financing strategy allows the Issa brothers to contribute only a small fraction of their own equity towards the deal. In a statement to the Financial Times, the Issa brothers and TDR expressed their satisfaction with securing debt financing at favorable rates, highlighting the exceptional demand from investors. This financing is part of a comprehensive capital structure designed to support and accelerate Asda’s growth strategy. Additionally, the deal includes a record-breaking asset-backed secured tranche of £2.25 billion, reflecting the recent surge in borrowing within the sterling high-yield bond market. Na Wei, managing director at Barclays, who led the transaction, noted that this deal has broadened perspectives on what is achievable in the market. The Issa brothers and TDR Capital finalized the acquisition of Asda from Walmart in October, with Walmart retaining an equity stake and a board seat in the business.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about the Issa brothers’ acquisition of Asda, including details about the financing and involvement of TDR Capital, as well as Walmart retaining an equity investment in the business. It does not include any digressions, sensationalism, redundancy, or personal perspective presented as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about the acquisition of Asda by the Issa brothers and TDR Capital through a record-breaking junk bond, but lacks in-depth analysis or exploration of the consequences of this deal on various stakeholders. It also does not offer actionable insights or new knowledge beyond reporting the facts.
Financial Relevance: Yes
Financial Markets Impacted: UK’s largest leveraged buyout in over a decade, sterling junk bond market, Asda supermarket chain, Walmart
Financial Rating Justification: The article discusses the acquisition of Asda by the Issa brothers and TDR Capital through a large-scale debt deal, which impacts financial markets and companies involved.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
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