Morrisons - comment

The refinancing is positive across the Morrisons debt stack. The new £1.2bn TLB will push much of Morrison’s maturities to November 2030 for under £10m in additional annual interest (+75bp at the tight end of guidance). The uplift in margin is small to secure a three-year maturity extension. The SSNs are now senior to the banks in maturity (November 27), but we expect Morrisons to call or tender for these bonds by the back end of 2025 when rates are lower. Morrisons have plenty of time to deal with the £1.2bn SUNS (maturing November 29) but could choose to refinance them simultaneously with the SSNs.