Morrisons’ owners Clayton, Dubilier & Rice (CD&R) have plans to raise more than £1 billion to repay some of the financing put in place when they purchased the supermarket for £7 billion last year.
CD&R secured Morrisons after it won a bidding war with rival investment firm Fortress after it had initially offered £5.5 billion for the retailer.
It plans to raise £1.075 billion in senior secured notes, paying 5.5% for the five-year term, according to The Business Desk.
The private equity owners have already placed £1.2 billion of junior secured notes with the Canada Pension Plan Investment Board.
City sources said that the plans had been under discussion for some time.
At the time, Morrisons said that underlying quarterly profits for the three months to 30 January had plummeted almost 10% to £316 million.
Additionally, the grocer stated that sales and profits could be further impacted by inflation and the war in Ukraine.