Asda’s New Owners Look to Buy Caffe Nero Loans: Telegraph

(Bloomberg) --

Brothers Mohsin and Zuber Issa and TDR Capital are in talks to buy more than half of coffee chain’s Caffe Nero’s 350 million pounds ($491 million) of loans, The Telegraph reported, citing people familiar with the matter.

The pair, who last week completed the purchase of U.K. supermarket chain Asda Group from Walmart Inc., are in talks with Alcentra and Partners Group to buy 180 million pounds ($252 million) of the loans, the newspaper reported, citing people familiar with the matter.

The acquisition would position the billionaire brothers to make a bid for control through a debt-for-equity swap were Caffe Nero to restructure its borrowing, The Telegraph said, citing banking insiders.

The brothers were previously reported to have been rebuffed in an attempt to buy the chain last year.

All parties declined to comment to The Telegraph.

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