Asda talks £500 million secured notes to yield 4½% to 4¾%, pricing Friday

By Paul A. Harris

Portland, Ore., Oct. 28 – Bellis Acquisition Co. plc, the holding company of U.K.-based supermarket chain operator Asda, talked its £500 million offering of senior secured notes due Feb. 15, 2026 (Ba3//BB+) to yield 4½% to 4¾%, tight to initial guidance of 4¾% to 5%, according to a market source.

The deal, which has been marketed during the past week by means of a telephone roadshow, is set to price Friday.

The notes come with the same maturity date and call dates as those of the company's existing sterling-denominated senior secured notes. Hence, they become callable on Feb. 15, 2023 at par plus 50% of the coupon.

Left physical bookrunner Barclays will bill and deliver for the Rule 144A and Regulation S offering. Deutsche Bank is also a joint physical bookrunner. BofA, Lloyds, Morgan Stanley, Rabobank and HSBC are joint bookrunners.

Bellis Acquisition was formed by the Issa Brothers and TDR Capital to effect the acquisition of Asda from Walmart Inc. in a transaction that closed in February 2021.

Proceeds from the notes sale will be used to repay amounts drawn on a bridge loan put in place for that acquisition.

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