Supermarket Chain Strengthens Finances with New Bond Issuance and Loan Agreements
- Morrisons reduces debt by £260m through refinancing
- New £930m bond issued with maturity in January 2031
- Additional term loan of £450m dated November 2030 agreed
- £1.193m of Sterling and Euro bonds from 2027 repurchased
- Total debt repayment since CD&R acquisition in October 2021 reaches £2.7bn
- Outstanding debt stands at £3.5bn
- Morrisons CFO Jo Goff: ‘Debt levels 43% lower than October 2021’
- Retail estate remains over 80% freehold
- £1bn debt buyback plan initiated in May 2024 after £2.5bn petrol forecourts sale to Motor Fuel Group (MFG)
- Morrisons pushes ahead with operational shake-up, closing cafés, Market Kitchens, convenience stores, meat and fish counters, and pharmacies
Morrisons, the UK-based supermarket chain, has successfully completed a refinancing exercise that reduces its debt by £260 million. The company issued a new £930 million equivalent Sterling and Euro bond with a maturity date of January 2031, agreed an additional term loan of £450 million dated November 2030, and repurchased £1.193 million of Sterling and Euro bonds from 2027 as well as £450 million of unsecured notes. This brings the total amount of debt repaid since Clayton, Dubilier & Rice (CD&R) acquired Morrisons in October 2021 to £2.7 billion. The company now has £3.5 billion in outstanding debt. Morrisons CFO Jo Goff stated, ‘We’re continuing to build a stronger, customer-focused Morrisons, renewing and modernising the business while maintaining our traditional values that are our foundation.’ In May 2024, Morrisons initiated a £1 billion debt buyback plan following the £2.5 billion sale of its petrol forecourts to Motor Fuel Group (MFG) in April 2022. The supermarket has been actively pursuing a turnaround strategy, including closing cafés, all 18 of its Market Kitchens, 17 convenience stores, 35 meat counters, and 35 fish counters, as well as four pharmacies.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Morrisons’ debt reduction efforts and its plans for business improvement without any sensationalism or personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about Morrisons’ debt reduction efforts and its plans to modernize the business. It also mentions specific actions taken such as closing cafés, convenience stores, and other operations. However, it could provide more in-depth analysis or insights into the impact of these changes on the company’s performance and future prospects.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Morrisons’ debt refinancing exercise, which includes issuing new bonds, extending loan maturities, and repurchasing bonds. This directly pertains to financial topics and impacts the company’s financial position.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
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