Asda - comment

ASDA is repaying £2.9bn in debt whilst raising £900m via a new TLB; ASDA will fill the gap via cash on hand (£1.1bn) and additional senior secured indebtedness. The existing 2026 trade inside 5.75%. We have not seen a new deal launch, but we expect one soon. ASDA is also extending its RCF and TLA (£195m). The company has pre-released Q124 headline numbers, Adjusted EBITDA margin is 4.8% (we expected 4.0%). ASDA continues to improve operationally, although in the latest 12-week period its market share fell by 0.40% to 13.40%. The drop underlines the need for price investment to continue in the sector.