S&P assigns B+ to ASDA notes

S&P said it assigned its B+ preliminary issue rating to the proposed £1.75 billion senior secured notes maturing in 2030 to be issued by ASDA Group (Bellis Finco plc; B+(prelim)/stable/--) through its subsidiary Bellis Acquisition Co. plc.

S&P assigned a 3 preliminary recovery rating to this debt, indicating an expectation of meaningful recovery prospects (50%-70%; rounded estimate: 65%) for debtholders in the event of a payment default.

ASDA intends to use the proceeds to refinance its existing senior secure debt maturing in 2025 and 2026, thus extending maturities to 2030 for the senior secured notes and 2031 for the term loan B.

Following the completion of the currently outstanding transactions, the capital structure will consist of £500 million of senior unsecured notes, the £166 million term loan A, £747.7 million revolving credit facility, £684 million related to a private placement, £500 million senior secured notes maturing in 2026, the proposed £900 million-equivalent term loan B and the proposed £1.75 billion senior secured notes.

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