Sainsbury’s new bond issue to net £350m

Sainsbury’s new bond issue to net £350m Sainsbury’s is planning to generate an extra £350m for its core operating business by securitising a second portfolio of 12 supermarkets, on the back of their successful ‘Project Redwing.’ Under the terms of Sainsbury’s first deal , in March of this year, the store sold a batch of 16 supermarkets to an offshore special purpose vehicle for £340m. Morgan Stanley Dean Witter sold bonds, backed by the income stream from the stores, to investors at a fixed interest rate of 7%. The latest securitisation deal put together by Morgan Stanley is likely to offer a floating interest rate on the securitisation rather than a fixed rate. The launch date for this date has been set for the 6 July.   Propery Week 19/05/00 page 104