Jan 22, 2022
Terry Leahy confident of Morrisons recovery as £6bn debt refinancing looms
More stores, new products, better branding and expanded ecommerce will help generate the additional profit needed to support Wm Morrison's heavy debts following its takeover by private equity, according to Sir Terry Leahy. Some in the credit markets have expressed concern that heavy debt could affect Morrisons' ability to respond to an expected squeeze on consumers' spending power and higher food price inflation. Even if the company can secure terms similar to those offered last year to Asda, a larger rival that also has a large debt burden, Morrisons' annual interest bill is set to rise sharply. "What we have seen is the industry and Morrisons gradually recovering its profitability." Even though its final offer was 61 per cent above Morrisons' undisturbed share price and almost a quarter higher than its opening bid, Leahy said CD&R had paid "a fair price" for the company.
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