U.K. supermarket retailer J. Sainsbury Plc announced its plans to refinance GBP1.7 billion ($2.9 billion) of its unsecured debt through the securitization of at least GBP2 billion ($3.4 billion) in CMBS paper as two deals began marketing last week.

Eddystone Finance plc will securitize GBP1.2 billion ($2.09 billion) of 12-year floating rate notes with a call and step-up after seven years, which will be backed by 75 supermarkets that have a market value of about GBP2 billion. The transaction offers investors 617.1 million ($733.4 million) of 5.4-year notes and GBP420.8 million ($734.9 million) of seven-year notes with a 42% LTV. Two subordinated tranches rated double-A and single-A sized at GBP140.3 million ($245 million) and GBP220.4 million ($385.17 million) with 49% and 60% LTVs, respectively, are also on offer.

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