ASDA - comment

The additional €185m loan at ASDA will refinance the GBP300m SSNs maturing in September 2026. The SSN coupon is 4.5%, which will be cheaper than the additional term loan B (Debtwire reports a margin of 400bp with a 97.75 OID). The TLB matures in May 2031 and is denominated in EUR. Despite the higher cost, ASDA may eliminate a current maturity and call the bonds early.