Asda - comment

ASDA can afford the additional coupon on the new SSNs; our 2024 forecast FCCR was 2.8x before the new issue and around 2.0x pro forma. The decision to push maturities out in the market rather than via an amend and extend has worked. However, other issuers need to recognise that the era of cheap debt is not coming back anytime soon 

ASDA’s new six-year SSNs are trading at 8.25% (mid) with a coupon of 8.1%.