Iceland makes return to public markets after £950m refinancing

Kasmira Jefford
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Iceland’s founder Malcolm Walker led the £1.4bn management buyout in 2012
ICELAND is set to report its first quarterly trading update to bondholders this month after completing a £950m refinancing that saw the frozen foods retailer return to the public markets for the first time in almost a decade.

The grocer, which runs 833 stores and franchises in UK and Europe, placed £950m of high yield bonds in July to repay debts relating to chief executive Malcolm Walker’s £1.4bn management buyout in 2012.

Walker and his management team, together with co-investors Brait, Landmark and Lord Kirkam, took control of the food chain from Icelandic banks Landsbanki and Glitnir.

Proceeds from the refinancing helped replace vendor loan notes issued to the Icelandic banks as part of the buyout and will also fund the retailer’s expansion.

Rothschild advised on the placing of the bonds, which are being traded on the Euro MTF market of the Luxembourg stock exchange.