Supermarket giant Morrisons has announced it has paid down a further £200m of debt and extended the maturity of its revolving credit facility to 2030, reducing its overall levels of debt.
Morrisons said the £200m payment meant that, since its acquisition by private equity firm CD&R, the supermarket has now paid down a total of £2.4bn of debt, bringing the overall debt figure down 40% to £3.8bn.
The retailer also extended its term loan facilities from 2027 to 2030, reducing the cost of the debt and extended its revolving credit facility to 2030.
Credit agency Moody’s also extended the owner’s secured debt from B2 to B1 on October 14, “reflecting the additional debt reduction and extended maturities” and changed the outlook to stable from negative.
Morrisons chief financial officer Jo Goff said: “I’m very pleased with the rapid progress of our deleveraging programme and our debt levels are now around 40% lower than in October 2021, whilst our retail estate remains over 80% freehold.
“Our operational progress is steadily improving as we invest in our colleagues, our prices, our store and logistics estate, our Loyalty programme and our fresh food manufacturing operations. These investments are a central part of our plans to build a stronger, more competitive and more distinct Morrisons with traditional values powered by modern retailing practices.”
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