EG Group to amend and extend loan following Asda deal
Proceeds from the sale will enable it to reduce its net debt from £7.8bn in March to £4.28bn, reducing net leverage from 6.3 times to 4.9 times
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Retail and petrol forecourt company, EG Group, has announced that it will seek to amend and extend its banking loans following the sale of its UK operations to Asda’s Issa Brothers.
This three-year amendment and extension will reportedly apply to the group’s remaining $3.4bn (£2.7bn) of term loans due in 2025/26.
The group sold its UK and Ireland operations to the supermarket chain for £2.27bn, but will still keep trading in nine countries, including the United States, Australia and Germany.
According to EG, proceeds from the sale will enable it to reduce its net debt from $9.8bn (£7.8bn) in March to $5.37bn (£4.28bn), reducing net leverage from 6.3 times to 4.9 times.
As a result, the group maintains that it has “a huge opportunity” to accelerate the roll-out of electric vehicle charging across its portfolio.
A spokesperson from EG Group said: “The group has already initiated a process with key relationship banks seeking both an extension of its RCF (revolving credit facility) and banking facilities, and has received good support in this process.”
Both EG Group and Asda are owned by Zuber and Mohsin Issa and private equity group TDR Capital.
