Morrisons - comment

The £370m proceeds from the ground rent deal will be used to repay debt.  The transaction will layer the SSNs, as the rents will be structurally senior. We would expect Morrisons to repay bank debt, but the company may prefer to tender for bonds sub-par as it did with the recent buyback (after the forecourt sale). Morrisons will report its Q3 results later today, and we may get more details. 

The ground rent transaction totals €370m, and we estimate an annual rent of £22m (using a cap rate of 7%). The ground rent is from 75 stores (and over 45 years).  

https://news.sky.com/story/morrisons-strikes-370m-property-deal-in-bid-to-shrink-debt-pile-13221854