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08 Oct 2026

A&O Shearman advises Iceland Foods on EUR900m-equivalent refinancing of high yield bonds

"A&O Shearman advised Iceland Foods on a EUR900 million-equivalent refinancing of all its outstanding high-yield bonds, issued in three tranches across two offerings. The deals included an August EUR600m issuance (two tranches) and an October GBP250m issuance, extending bond maturities to 2031 and the GBP75m RCF to April 2030."

A&O Shearman advised Iceland Foods on the EUR900 million-equivalent refinancing of all its outstanding high yield bonds. The new bonds were issued in three tranches across two separate offerings. Both offerings priced at the tightest spreads over benchmark in Iceland’s history as a high yield issuer. The first transaction, completed in August, raised EUR600m through two tranches: EUR300m 6.625% senior secured notes due 2033 and EUR300m E+3.625% senior secured floating rate notes due 2033. The proceeds refinanced two existing tranches of notes due 2027 at a lower cost of debt and added cash to the balance sheet. The second transaction, completed in October, comprised GBP250m 8.000% senior secured notes due 2031 and refinanced the company’s remaining sterling notes due 2028. As a result, Iceland now has no bond maturities before October 2031, and the maturity of its GBP75m revolving credit facility has been extended to April 2030. The refinancings follow a period of strong performance at Iceland. Building on its heritage as an iconic UK retailer, Iceland has evolved into a diversified and international food business, with nearly 1,000 stores across the UK and around 30,000 employees. The company has continued to grow sales and market share, supported by its value positioning, the ongoing expansion of its Food Warehouse stores and an expanding wholesale offering. A&O Shearman represented Iceland Foods with a team composed by: John Kicken, Partner, London; Sampada Bannurmath, Senior Associate, London; Majd Atalla, Associate, London; Laurens de Korte, Associate, London; George Knighton, Partner, London; Xinni Lim, Partner, London; Matthew Short, Senior Associate, London; Sophie Hilton, Associate, London.
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