Morrisons has completed a major debt restructuring, including the repayment of an additional £200m, bringing its total debt reduction to £2.4bn since its acquisition by Clayton, Dubilier & Rice.
The supermarket giant confirmed it has now reduced its debt by nearly 40%, from £6.2bn to £3.8bn.
The restructuring included extending its Term Loan Facilities from 2027 to 2030 and reducing both the cost of the debt and the overall debt level. The retailer has also extended its Revolving Credit Facility to 2030.
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The move follows an upgrade from credit rating agency Moody’s, which raised the credit rating of Morrisons’ parent company, Market Holdco 3 Limited, from B2 to B1.
The upgrade reflects the grocer’s reduced debt load and extended debt maturities, with Moody’s also revising its outlook from “negative” to “stable.”
Morrisons chief financial officer Jo Goff said: “I’m very pleased with the rapid progress of our deleveraging programme and our debt levels are now around 40% lower than in October 2021, whilst our retail estate remains over 80% freehold.
“Our operational progress is steadily improving as we invest in our colleagues, our prices, our store and logistics estate, our Loyalty programme and our fresh food manufacturing operations.
“These investments are a central part of our plans to build a stronger, more competitive and more distinct Morrisons with traditional values powered by modern retailing practices.”
In its latest results, the supermarket chain saw its sales nudge up during its third quarter.
From 29 April to 28 July, sales were up 2% to almost £4bn as it made further progress across its three strategic pillars: commercial excellence, operations optimisation and new value creation.
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